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Case 7.37 LO 7-7, 7-8 Analysis of long-term debt Assume that Home and Office City Inc. provided the following comparative data concerning long-term debt
Case 7.37 LO 7-7, 7-8 Analysis of long-term debt Assume that Home and Office City Inc. provided the following comparative data concerning long-term debt in the notes to its 2023 annual report (amounts in millions): Page 273 34% Convertible Subordinated Notes, due October 1, 2024; converted into shares of common stock of the Company at a conversion price of $15.3611 per share in October 2023 61% Senior Notes, due September 15, 2027; interest payable semiannually on March 15 and September 15 beginning in 2023 Commercial Paper; weighted average interest rate of 4.8% at January 1, 2022 December December 31, 2023 31, 2022 $ - 500 $1,103 Financing Lease Obligations; payable in varying installments through January 31, 2050 Installment Notes Payable; interest imputed at rates between 5.2% and 10.0%; payable in varying installments through 2041 Unsecured Bank Loan; floating interest rate averaging 6.05% in fiscal 2023 and 5.90% in fiscal 2022; payable in August 2025 Variable-Rate Industrial Revenue Bonds; secured by letters of credit or land; interest rates averaging 2.9% during fiscal 2023 and 3.8% during fiscal 2022; payable in varying installments through 2033 Total long-term debt Less current installments Long-term debt, excluding current installments - 246 216 180 45 27 15 15 15 $ 779 29 $1,580 14 $ 750 $1,566
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