The following information was taken from the footnotes to Johnson & Johnson's 2008 financial statements (dollars in

Question:

The following information was taken from the footnotes to Johnson & Johnson's 2008 financial statements (dollars in millions):

S 183 500 Zero coupon debentures due 2020 4.95% debentures due 2033 3.00 4.95 3.80% debentures due 2013 6.95% notes due

Required:
(a) Which amounts appeared on Johnson & Johnson's balance sheet and where?
(b) What is a zero coupon debenture, and how does the effective interest rate affect the debenture? Explain.
(c) Which of the long-term debts above were issued at face value (i.e., sold at par)?
(d) Is the face value of the 6.95 percent notes due 2029 greater than, less than, or equal to the balance sheet value? Explain.

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