Question
Culver Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year. (a) $12 million, 10-year, 15% unsecured
Culver Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year.
(a) | $12 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%. | |
(b) | $30 million par of 10-year, zero-coupon bonds at a price to yield 10% per year. | |
(c) | $20 million, 10-year, 9% mortgage bonds, interest payable annually to yield 10%. |
Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of interest periods over life of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) payment amount per period, and (6) present value of bonds at date of issue. (Round stated and effective rate per period to 2 decimal places, e.g. 10.25%. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)
Unsecured Bonds | Zero-Coupon Bonds | Mortgage Bonds | |||||||||
(1) | Maturity value | $ | $ | $ | |||||||
(2) | Number of interest periods | ||||||||||
(3) | Stated rate per period | % | % | % | |||||||
(4) | Effective rate per period | % | % | % | |||||||
(5) | Payment amount per period | $ | $ | $ | |||||||
(6) | Present value | $ | $ | $ |
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