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(in case you cant see the image) Shamrock Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal
(in case you cant see the image)
Shamrock Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year:
1. | $10 million, 8-year, 13% unsecured bonds, with interest payable quarterly, priced to yield 11% | |
2. | $2.4 million par of 11-year, zero-coupon bonds at a price to yield 11% per year | |
3. | $13 million, 11-year, 10% mortgage bonds, with interest payable annually to yield 11% |
QUESTION:
A) Prepare a schedule that identifies the following items for each bond:
Shamrock Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year: 1. $10 million, 8-year, 13% unsecured bonds, with interest payable quarterly, priced to yield 11% 2. $2.4 million par of 11-year, zero-coupon bonds at a price to yield 11% per year 3. $13 million, 11-year, 10% mortgage bonds, with interest payable annually to yield 11% Prepare a schedule that identifies the following items for each bond: (For calculation purposes, use 5 decimal places as displayed in the factor table provided round percentages to 2 decimal places, e.g. 15.12% and all other answers to O decimal places, e.g. 5,275. Do not leave any answer field blank. Enter o for amounts.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Unsecured Bonds Zero- Coupon Bonds Mortgage Bonds (a) (b) Maturity value Number of interest periods over the life of the bond % (c) (d) Stated rate for each interest period Effective interest rate for each interest period (e) Payment amount per period (f) Present value of the bonds at the date of issue $
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