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Ivanhoe 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
Ivanhoe 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
*Notate if each bond is unsecured, zero coupon, or mortgage bonds
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