Face Value of Bonds = $39,200,000
Annual Stated Interest Rate = 8.00%
Semiannual Stated Interest Rate = 4.00%
Semiannual Stated Interest = 4.00% * $39,200,000
Semiannual Stated Interest = $1,568,000
Time to Maturity = 15 years
Semiannual Period = 30
Annual Market Interest Rate = 7.00%
Semiannual Market Interest Rate = 3.50%
Issue Price = $1,568,000 * PVA of $1 (3.50%, 30) + $39,200,000 *
PV of $1 (3.50%, 30)
Issue Price = $1,568,000 * 18.3920 + $39,200,000 * 0.3563
Issue Price = $42,805,616
The bonds will issue at premium.
Required information [The following information applies to the questions displayed below.) On January 1, 2021, Frontier...
Required information The following information applies to the questions displayed below. On January 1, 2021, Frontier World Issues $39.2 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 2-a. If the market rate is 8%, calculate the...
Required information The following information applies to the questions displayed below] On January 1, 2021, Frontier World issues $40.4 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 8%, calculate...
Required information The following information applies to the questions displayed below.] On January 1, 2021. Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 7%, calculate...
Required information [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $40.8 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 6%, calculate...
Required information [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $39.5 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines 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 9%, calculate the...
Required information [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $39.5 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 2-a. If the market rate is 8%, calculate the...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Frontier World issues $39. million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. 2-a. If the market rate is 7%, calculate the...
Required Information [The following information applies to the questions displayed below.] On January 1, 2021, Frontier World Issues $41 million of 9% bonds, due in 20 years, with Interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 8%, calculate...
Required Information [The following information applies to the questions displayed below) On January 1, 2021, Frontier World Issues $40.3 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one nde. Required: 1-a. If the market rate is 7%, calculate...
Required information The following information applies to the questions displayed below.] On January 1, 2021, Frontier World issues $39.5 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 7%, calculate...