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Kingbird Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year: 1. $11 million, 10-year, 12% unsecured
Kingbird Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year:
1. | $11 million, 10-year, 12% unsecured bonds, with interest payable quarterly, priced to yield 11% | |
2. | $2.8 million par of 10-year, zero-coupon bonds at a price to yield 11% per year | |
3. | $14 million, 10-year, 9% mortgage bonds, with interest payable annually to yield 11% |
Prepare a schedule that identifies the following items for each bond:
Unsecured Bonds | Zero- Coupon Bonds | Mortgage Bonds | |||||||||
(a) | Maturity value | $ | $ | $ | |||||||
(b) | Number of interest periods over the life of the bond | ||||||||||
(c) | Stated rate for each interest period | % | % | % | |||||||
(d) | 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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