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Pawnee Inc. has issued three types of debt on January 1, 2012, the start of the company's fiscal year. (a) $11,700, 7-year, 23% unsecured bonds,
Pawnee Inc. has issued three types of debt on January 1, 2012, the start of the company's fiscal year. (a) $11,700, 7-year, 23% unsecured bonds, interest payable quarterly. Bonds were priced to yield 20%. (b) $27,800 par of 13-year, zero-coupon bonds at a price to yield 15.00% per year. (c) $19,500, 10-year, 9% mortgage bonds, interest payable annually to yield 11%. 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 (Round answers to 2 decimal places, e.g. 1.25 of the %.) (4) effective interest rate per each interest period (Round answers to 2 decimal places, e.g. 2.25.) (5) payment amount per period (Round answers to zero decimal places, e.g. 12,510.) (6) present value of bonds at date of issue (Use present values in text, or round present values to 5 decimal places. Round answers to zero decimal places, e.g. 12,510.)
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