Business
Business, 19.02.2020 23:18, shealwaysknows23

Marigold Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year. (a) $10 million, 10-year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%. (b) $29 million par of 10-year, zero-coupon bonds at a price to yield 10% per year. (c) $20 million, 10-year, 8% 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 0 decimal places e. g. 58,971.) Unsecured Bonds Zero-Coupon Bonds Mortgage Bonds (1) Maturity value $ 10000000 $ 29000000 $ 20000000 (2) Number of interest periods 40 10 10 (3) Stated rate per period 3.5 % 0 % 8 % (4) Effective rate per period 2.5 % 10 % 10 % (5) Payment amount per period $ 350000 $ 0 $ 1600000 (6) Present value $ 12510278 $ 11180755

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Marigold Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal y...

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