Question
Shamrock Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year: 1. $10 million, 5-year, 13% unsecured
Shamrock Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year: 1. $10 million, 5-year, 13% unsecured bonds, with interest payable quarterly, priced to yield 10% 2. $2.4 million par of 5-year, zero-coupon bonds at a price to yield 10% per year 3. $13 million, 5-year, 9% mortgage bonds, with interest payable annually to yield 10% Prepare a schedule that identifies the following items for each bond: (For calculation purposes, use 5 decimal places as displayed in the factor table provided round percentages to 2 decimal places, e.g. 15.12% and all other answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Unsecured Bonds | Zero- Coupon Bonds | Mortgage Bonds | |
Number of interest periods over the life of the bond | |||
Stated rate for each interest period | |||
Effective interest rate for each interest period | |||
Payment amount per period | |||
Present value of the bonds at the date of issue |
Maturity value |
Present Value of 1
(n) periods | 2% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 15% |
1 | 0.98039 | 0.97561 | 0.97087 | 0.96156 | 0.95238 | 0.94340 | 0.93458 | 0.92593 | 0.91743 | 0.90909 | 0.90090 | 0.89286 | 0.86957 |
2 | 0.96117 | 0.95181 | 0.94260 | 0.92456 | 0.90703 | 0.89000 | 0.87344 | 0.85734 | 0.84168 | 0.82645 | 0.81162 | 0.79719 | 0.75614 |
3 | 0.94232 | 0.92860 | 0.91514 | 0.88900 | 0.86384 | 0.83962 | 0.81630 | 0.79383 | 0.77218 | 0.75132 | 0.73119 | 0.71178 | 0.65752 |
4 | 0.92385 | 0.90595 | 0.88849 | 0.85480 | 0.82270 | 0.79209 | 0.76290 | 0.73503 | 0.70843 | 0.68301 | 0.65873 | 0.63552 | 0.57175 |
5 | 0.90583 | 0.88385 | 0.86261 | 0.82193 | 0.78353 | 0.74726 | 0.71299 | 0.68058 | 0.64993 | 0.62092 | 0.59345 | 0.56743 | 0.49718 |
6 | 0.88797 | 0.86230 | 0.83748 | 0.79031 | 0.74622 | 0.70496 | 0.66634 | 0.63017 | 0.59627 | 0.56447 | 0.53464 | 0.50663 | 0.43233 |
7 | 0.87056 | 0.84127 | 0.81309 | 0.75992 | 0.71068 | 0.66506 | 0.62275 | 0.58349 | 0.54703 | 0.51316 | 0.48166 | 0.45235 | 0.37594 |
8 | 0.85349 | 0.82075 | 0.78941 | 0.73069 | 0.67684 | 0.62741 | 0.58201 | 0.54027 | 0.50187 | 0.46651 | 0.43393 | 0.40388 | 0.32690 |
9 | 0.83676 | 0.80073 | 0.76642 | 0.70259 | 0.64461 | 0.59190 | 0.54393 | 0.50025 | 0.46043 | 0.42410 | 0.39092 | 0.36061 | 0.28426 |
10 | 0.82035 | 0.78120 | 0.74409 | 0.67556 | 0.61391 | 0.55839 | 0.50835 | 0.46319 | 0.42241 | 0.38554 | 0.35218 | 0.32197 | 0.24719 |
11 | 0.80426 | 0.76214 | 0.72242 | 0.64958 | 0.58468 | 0.52679 | 0.47509 | 0.42888 | 0.38753 | 0.35049 | 0.31728 | 0.28748 | 0.21494 |
12 | 0.78849 | 0.74356 | 0.70138 | 0.62460 | 0.55684 | 0.49697 | 0.44401 | 0.39711 | 0.35554 | 0.31863 | 0.28584 | 0.25668 | 0.18691 |
13 | 0.77303 | 0.72542 | 0.68095 | 0.60057 | 0.53032 | 0.46884 | 0.41496 | 0.36770 | 0.32618 | 0.28966 | 0.25751 | 0.22917 | 0.16253 |
14 | 0.75788 | 0.70773 | 0.66112 | 0.57748 | 0.50507 | 0.44230 | 0.38782 | 0.34046 | 0.29925 | 0.26333 | 0.23199 | 0.20462 | 0.14133 |
15 | 0.74301 | 0.69047 | 0.64186 | 0.55526 | 0.48102 | 0.41727 | 0.36245 | 0.31524 | 0.27454 | 0.23939 | 0.20900 | 0.18270 | 0.12289 |
16 | 0.72845 | 0.67362 | 0.62317 | 0.53391 | 0.45811 | 0.39365 | 0.33873 | 0.29189 | 0.25187 | 0.21763 | 0.18829 | 0.16312 | 0.10687 |
17 | 0.71416 | 0.65720 | 0.60502 | 0.51337 | 0.43630 | 0.37136 | 0.31657 | 0.27027 | 0.23107 | 0.19785 | 0.16963 | 0.14564 | 0.09293 |
18 | 0.70016 | 0.64117 | 0.58739 | 0.49363 | 0.41552 | 0.35034 | 0.29586 | 0.25025 | 0.21199 | 0.17986 | 0.15282 | 0.13004 | 0.08081 |
19 | 0.68643 | 0.62553 | 0.57029 | 0.47464 | 0.39573 | 0.33051 | 0.27651 | 0.23171 | 0.19449 | 0.16351 | 0.13768 | 0.11611 | 0.07027 |
20 | 0.67297 | 0.61027 | 0.55368 | 0.45639 | 0.37689 | 0.31180 | 0.25842 | 0.21455 | 0.17843 | 0.14864 | 0.12403 | 0.10367 | 0.06110 |
Present Value of an Annuity of 1
PV=11(1+i)ni | |||||||||||||
(n) Periods | 2% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 15% |
1 | 0.98039 | 0.97561 | 0.97087 | 0.96154 | 0.95238 | 0.94340 | 0.93458 | 0.92593 | 0.91743 | 0.90909 | 0.90090 | 0.89286 | 0.86957 |
2 | 1.94156 | 1.92742 | 1.91347 | 1.88609 | 1.85941 | 1.83339 | 1.80802 | 1.78326 | 1.75911 | 1.73554 | 1.71252 | 1.69005 | 1.62571 |
3 | 2.88388 | 2.85602 | 2.82861 | 2.77509 | 2.72325 | 2.67301 | 2.62432 | 2.57710 | 2.53130 | 2.48685 | 2.44371 | 2.40183 | 2.28323 |
4 | 3.80773 | 3.76197 | 3.71710 | 3.62990 | 3.54595 | 3.46511 | 3.38721 | 3.31213 | 3.23972 | 3.16986 | 3.10245 | 3.03735 | 2.85498 |
5 | 4.71346 | 4.64583 | 4.57971 | 4.45182 | 4.32948 | 4.21236 | 4.10020 | 3.99271 | 3.88965 | 3.79079 | 3.69590 | 3.60478 | 3.35216 |
6 | 5.60143 | 5.50813 | 5.41719 | 5.24214 | 5.07569 | 4.91732 | 4.76654 | 4.62288 | 4.48592 | 4.35526 | 4.23054 | 4.11141 | 3.78448 |
7 | 6.47199 | 6.34939 | 6.23028 | 6.00205 | 5.78637 | 5.58238 | 5.38929 | 5.20637 | 5.03295 | 4.86842 | 4.71220 | 4.56376 | 4.16042 |
8 | 7.32548 | 7.17014 | 7.01969 | 6.73274 | 6.46321 | 6.20979 | 5.97130 | 5.74664 | 5.53482 | 5.33493 | 5.14612 | 4.96764 | 4.48732 |
9 | 8.16224 | 7.97087 | 7.78611 | 7.43533 | 7.10782 | 6.80169 | 6.51523 | 6.24689 | 5.99525 | 5.75902 | 5.53705 | 5.32825 | 4.77158 |
10 | 8.98259 | 8.75206 | 8.53020 | 8.11090 | 7.72173 | 7.36009 | 7.02358 | 6.71008 | 6.41766 | 6.14457 | 5.88923 | 5.65022 | 5.01877 |
11 | 9.78685 | 9.51421 | 9.25262 | 8.76048 | 8.30641 | 7.88687 | 7.49867 | 7.13896 | 6.80519 | 6.49506 | 6.20652 | 5.93770 | 5.23371 |
12 | 10.57534 | 10.25776 | 9.95400 | 9.38507 | 8.86325 | 8.38384 | 7.94269 | 7.53608 | 7.16073 | 6.81369 | 6.49236 | 6.19437 | 5.42062 |
13 | 11.34837 | 10.98319 | 10.63496 | 9.98565 | 9.39357 | 8.85268 | 8.35765 | 7.90378 | 7.48690 | 7.10336 | 6.74987 | 6.42355 | 5.58315 |
14 | 12.10625 | 11.69091 | 11.29607 | 10.56312 | 9.89864 | 9.29498 | 8.74547 | 8.24424 | 7.78615 | 7.36669 | 6.98187 | 6.62817 | 5.72448 |
15 | 12.84926 | 12.38138 | 11.93794 | 11.11839 | 10.37966 | 9.71225 | 9.10791 | 8.55948 | 8.06069 | 7.60608 | 7.19087 | 6.81086 | 5.84737 |
16 | 13.57771 | 13.05500 | 12.56110 | 11.65230 | 10.83777 | 10.10590 | 9.44665 | 8.85137 | 8.31256 | 7.82371 | 7.37916 | 6.97399 | 5.95424 |
17 | 14.29187 | 13.71220 | 13.16612 | 12.16567 | 11.27407 | 10.47726 | 9.76322 | 9.12164 | 8.54363 | 8.02155 | 7.54879 | 7.11963 | 6.04716 |
18 | 14.99203 | 14.35336 | 13.75351 | 12.65930 | 11.68959 | 10.82760 | 10.05909 | 9.37189 | 8.75563 | 8.20141 | 7.70162 | 7.24967 | 6.12797 |
19 | 15.67846 | 14.97889 | 14.32380 | 13.13394 | 12.08532 | 11.15812 | 10.33560 | 9.60360 | 8.95012 | 8.36492 | 7.83929 | 7.36578 | 6.19823 |
20 | 16.35143 | 15.58916 | 14.87747 | 13.59033 | 12.46221 | 11.46992 | 10.59401 | 9.81815 | 9.12856 | 8.51356 | 7.96333 | 7.46944 | 6.25933 |
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