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Pearl Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year. (a) $10 million, 11-year, 14% unsecured
Pearl Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year. (a) $10 million, 11-year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%. $28 million par of 11-year, zero-coupon bonds at a price to yield 12% per year. (b) (c) $17 million, 11-year, 10% mortgage bonds, interest payable annually to yield 12%. 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. (Round stated and effective rate per period to 2 decimal places, e.g. 10.25%. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to decimal places e.g. 58,971.) Unsecured Bonds Zero-Coupon Bonds Mortgage Bonds (1) Maturity value $ TA $ $ (2) Number of interest periods (3) Stated rate per period % % % (4) Effective rate per period % % % (5) Payment amount per period $ $ $ (6) Present value $ $ $
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