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Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $55,000, 5-year,
Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $55,000, 5-year, 9% convertible bonds payable, cash interest payable semiannually on June 30 and December 31 to yield 10%. 2. $11,000, 8-year, 10% note payable, cash interest payable semiannually on June 30 and December 31 to yield 9.5%. 3. $33,000, 10-year, zero-interest-bearing bonds to yield 11% annually. Note: Enter the percentages rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Note: Round dollar amounts to the nearest dollar. For each debt, indicate the following: 2 3 a. Face value. $ $ b. Stated rate per interest period. 56 96 9 c. Stated interest amount per interest period. $ $ $ d. Market rate per interest period. 56 96 96 e. Number of interest periods over life of the debt. f. Selling price. $ $ g. Maturity date. O h. Authorization date. O $
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