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Karen Austin Inc. has issued three types of debt on January 1, 2014, the start of the companys fiscal year. (a) $10 million, 10-year, 15%
Karen Austin Inc. has issued three types of debt on January 1, 2014, the start of the companys fiscal year. (a) $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%. (b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year. (c) $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%.
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