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Wildhorse Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal year. (a) $11 million, 9-year, 14%
Wildhorse Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal year. (a) $11 million, 9-year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%. (b) $27 million par of 9-year, zero-coupon bonds at a price to yield 10% per year. (c) $15 million, 9-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.) (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 Unsecured Bonds 11000000 36 3.50 % 2.50 % 385000 Zero-Coupon Bonds 27000000 11450636 % Mortgage Bonds 15000000 10 1350000 % %
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