Question

Required informatlon The following information applies to the questions displayed below.] On January 1, 2021, Frontler World Issues $41 million of 9% bonds, due in 20 years, wth interest payable semlannually on June 30 and December 31 each year. The proceeds will be used to bulld a new ride that comblines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 3-a. If the market rate is 10%, calculate the Issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions.) Bond Characteristics Amount Face amount 41,000,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will Issue at A Premlum A DIscount Face amount

Answer 1

Amocent Bond characteristcs $41000 000 18445000 LO years face amecent Toterest paroent periods to mateeaty marcet Gnterest vate $374805395 ssue prAcei Lpresent vale af futterecash ftous + present value ae edemptionamount at the end af mmatuurity periad ntered s paid seiannuall s0 Gnterest f be q 5 Number o sem annual periods years -Lpo yearS 20 X 2 = 514 to martet rate a fnterest 2 .. 4100000Ox 40590 $45000 Interest aants

40 years end op 1845000 X pvAFOS $410.00,000 XPVF at the 4oth year 41o oo 000 x0 142 + 184500DX 1-15 314 80 539 5 isue psice $ 314805395 -b The bonds LLssCue at adiscocunt