Face Value of Bonds = $25,600,000
Annual Coupon Rate = 6.00%
Semiannual Coupon Rate = 3.00%
Semiannual Coupon = 3.00% * $25,600,000
Semiannual Coupon = $768,000
Time to Maturity = 20 years
Semiannual Period = 40
Annual Interest Rate = 7.00%
Semiannual Interest Rate = 3.50%
If PV Factor is upto 3 decimals:
Issue Price of Bonds = $768,000 * PVA of $1 (3.50%, 40) +
$25,600,000 * PV of $1 (3.50%, 40)
Issue Price of Bonds = $768,000 * 21.355 + $25,600,000 *
0.253
Issue Price of Bonds = $22,877,440
If PV Factor is upto 4 decimals:
Issue Price of Bonds = $768,000 * PVA of $1 (3.50%, 40) +
$25,600,000 * PV of $1 (3.50%, 40)
Issue Price of Bonds = $768,000 * 21.3551 + $25,600,000 *
0.2526
Issue Price of Bonds = $22,867,277
Required information The following information applies to the questions displayed below.) Part of 3 On January...
Required information The following information applies to the questions displayed below.) On January 1, 2021, Water World issues $25.6 million of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the "tornado' a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom....
Required information The following information applies to the questions displayed below) int 2 of 3 On January 1, 2021, Water World issues $25.6 million of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the tornado- a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small...
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please answer parts 1,2,3 and
explain how you got to answer
The following information applies to the questions displayed below.] On January 1, 2018, Water World issues $24.8 million of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the "tornado"- a giant outdoor vortex in which riders spin in progressively smaller and faster circles until...
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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...
thank you
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