Question
Provide the amortization table for this bond issuance: The 11%, $200 million bonds were issued on 1/1/2013 to yield 12%, while bondsthat were similar in
Provide the amortization table for this bond issuance:
The 11%, $200 million bonds were issued on 1/1/2013 to yield 12%, while bondsthat were similar in all respects, except that they were nonconvertible, were sellingat 92. Interest is paid semiannually on June 30 and Dec 31. Each $1,000 bond isconvertible into 20 shares of the Companys no par common stock. The bonds arecallable at 101 beginning in 2017 before the maturity date on Dec 31, 2020.
Edit (1):------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Bradley-Link's December 31, 2016, balance sheet included the following note:
Long-term liabilities
11% convertible bonds (net of unamortized discount or premium) ----------------- $193,790,206
Notes:
Bradley-Link uses an effective rate method to amortize discounts and premiums for the convertible bonds, and a straight-line method for the nonconvertible bonds
On 1/1/17, when Bradley-Link's common stock had a market price of $55 per share, Bradley-Link called the convertible bonds to force conversion. All the bonds were converted
Comment:
I believe the 92 is referring to bonds that are similar in all regards except that they are nonconvertible. I'm sorry, I hope that helps, that's all the question has. Thank you!
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