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Your answer is partially correct. Try again. Larkspur Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal
Your answer is partially correct. Try again. Larkspur Inc. has issued three types of debt on January 1, 2017, the start of the company's fiscal year. (a) $10 million, 9-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%. (b) $25 million par of 9-year, zero-coupon bonds at a price to yield 10% per year. (c) $16 million, 9-year, 9% mortgage bonds, interest payable annually to yield 10%. 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 O decimal places e.g. 58,971.) Unsecured Bonds Zero-Coupon Bonds Mortgage Bonds (1) Maturity value 10,000,000 T 25,000,000 16,000,000 (2) Number of interest periods 108 36 3.75% T T (3) Stated rate per period T 0.75 (4) Effective rate per period 2.50 % 10% T 0.833|| % (5) Payment amount per period 120,000 (6) Present value 9638582.23 15056585.02
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