Teal Mountain Inc. has issued three types of debt on January 1, 2020, the start of...

Teal Mountain Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year:

1.		$10 million, 10-year, 12% unsecured bonds, with interest payable quarterly, priced to yield 11%
2.		$2 million par of 12-year, zero-coupon bonds at a price to yield 11% per year
3.		$14 million, 12-year, 9% mortgage bonds, with interest payable annually to yield 11%

Prepare a schedule that identifies the following items for each bond:

		Unsecured Bonds		Zero- Coupon Bonds		Mortgage Bonds
(a)	Maturity value	$		$		$
(b)	Number of interest periods over the life of the bond
(c)	Stated rate for each interest period		%		%		%
(d)	Effective interest rate for each interest period		%		%		%
(e)	Payment amount per period	$				$
(f)	Present value of the bonds at the date of issue

Expert Solution

jeff jeffy answered 3 years ago

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