1. Snyder Software Inc. has successfully developed a new spreadsheet p
QUESTION
1. Snyder Software Inc. has successfully developed a new spreadsheet program. To produce and market the program, the company needed $2 million of
additional financing. On January 1, 2012, Snyder borrowed money as follows.
1. Snyder issued $500,000, 11%, 10-year convertible bonds. The bonds sold at face value and pay semiannual interest on January 1 and July 1. Each $1,000
bond is convertible into 30 shares of Snyders $20 par value common stock.
2. Snyder issued $1 million, 10%, 10-year bonds at face value. Interest is payable semiannually on January 1 and July 1.
3. Snyder also issued a $500,000, 12%, 15-year mortgage payable. The terms provide for semiannual installment payments of $36,324 on June 30 and December
31.
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ANSWER:
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