Karen Austin Inc. has issued the following debt on January 1, 2020, the start of the companys fiscal year.

$10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%.

Instructions:

Please show necessary steps of calculations.

Prepare a schedule that identifies the following items for this 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.