Exercise 14-11

Marin Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal year.

(a)$10million,9-year,14% unsecured bonds, interest payable quarterly. Bonds were priced to yield10%.(b)$27million par of9-year, zero-coupon bonds at a price to yield10% per year.(c)$19million,9-year,9% mortgage bonds, interest payable annually to yield10%.

Prepar 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.)

Exercise 14-11 Marin Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal year. (a) $10 million, 9year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%. (b) $27 million par of 9year, zerocoupon bonds at a price to yield 10% per year. (c) $19 million, 9year, 9% mortgage bonds, interest payable annually to yield 10%. Prepare a schedule that identies 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 Zero-Coupon Mortgage Bonds Bonds 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 $ $ $