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Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $60,000, 5-year, 9% convertible bonds payable, cash interest payable semiannually on June 30 and December 31 to yield 10%. 2. $12,000, 8-year, 10% note payable, cash interest payable semiannually on June 30 and December 31 to yield 9.5%. 3. $36,000, 10-year, zero-interest-bearing bonds to yield 11% annually. Note: Enter the percentages rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Note: Round dollar amounts to the nearest dollar. For each debt, indicate the following: a. Face value. b. Stated rate per interest period. c. Stated interest amount per interest period. d. Market rate per interest period. e. Number of interest periods over life of the debt. f. Selling price. g. Maturity date. 2 3 60,000 $ 12,000 $ 36,000 0% 0% 0% 0 $ 0 $ 0 0% 0% 0% 0 0 0 0 $ 0 $ 0 = h. Authorization date.

Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $60,000, 5-year, 9% convertible bonds payable, cash interest payable semiannually on June 30 and December 31 to yield 10%. 2. $12,000, 8-year, 10% note payable, cash interest payable semiannually on June 30 and December 31 to yield 9.5%. 3. $36,000, 10-year, zero-interest-bearing bonds to yield 11% annually. Note: Enter the percentages rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Note: Round dollar amounts to the nearest dollar. For each debt, indicate the following: a. Face value. b. Stated rate per interest period. c. Stated interest amount per interest period. d. Market rate per interest period. e. Number of interest periods over life of the debt. f. Selling price. g. Maturity date. 2 3 60,000 $ 12,000 $ 36,000 0% 0% 0% 0 $ 0 $ 0 0% 0% 0% 0 0 0 0 $ 0 $ 0 = h. Authorization date.

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Long-Term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 12.2APR
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Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $60,000, 5-year, 9% convertible bonds payable, cash interest payable semiannually on June 30 and December 31 to yield 10%. 2. $12,000, 8-year, 10% note payable, cash interest payable semiannually on June 30 and December 31 to yield 9.5%. 3. $36,000, 10-year, zero-interest-bearing bonds to yield 11% annually. Note: Enter the percentages rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Note: Round dollar amounts to the nearest dollar. For each debt, indicate the following: a. Face value. b. Stated rate per interest period. c. Stated interest amount per interest period. d. Market rate per interest period. e. Number of interest periods over life of the debt. f. Selling price. g. Maturity date. h. Authorization date. Check 2 3 $ 60,000 $ 12,000 $ 36,000 0% 0% 0% 0 $ 0 $ 0 0% 0% 0% 0 0 0 $ 0 $ 0 $ 0 ÷
Transcribed Image Text:Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was authorized and issued by Anderson Company. 1. $60,000, 5-year, 9% convertible bonds payable, cash interest payable semiannually on June 30 and December 31 to yield 10%. 2. $12,000, 8-year, 10% note payable, cash interest payable semiannually on June 30 and December 31 to yield 9.5%. 3. $36,000, 10-year, zero-interest-bearing bonds to yield 11% annually. Note: Enter the percentages rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. Note: Round dollar amounts to the nearest dollar. For each debt, indicate the following: a. Face value. b. Stated rate per interest period. c. Stated interest amount per interest period. d. Market rate per interest period. e. Number of interest periods over life of the debt. f. Selling price. g. Maturity date. h. Authorization date. Check 2 3 $ 60,000 $ 12,000 $ 36,000 0% 0% 0% 0 $ 0 $ 0 0% 0% 0% 0 0 0 $ 0 $ 0 $ 0 ÷
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