1-a. If the market rate is 8%, 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 mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount Interest payment Periods to maturity Market interest rate 30,100,000 Issue price 1-b. The bonds will issue at O A Discount OA Premium O Face amount
1-a. If the market rate is 8%, 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 mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount Interest payment Periods to maturity Market interest rate 30,100,000 Issue price 1-b. The bonds will issue at O A Discount OA Premium O Face amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
thank you.
![Requlred Informatlon
[The following information applies to the questions displayed below.]
On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in
20 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
1-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the
tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mllllons. Round "Market Interest rate" to 1
decimal place. Round your final answers to the nearest whole dollar.)
Bond Characteristics
Amount
Face amount
39,100,000
Interest payment
Periods to maturity
Market interest rate
Issue price
1-b. The bonds will issue at
OA Discount
OA Premium
O Face amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c03d17e-03c0-44bf-860a-ef4a718bf31e%2Ff2aa88e5-cb7b-4364-b97a-e504295c7e26%2Fhxyk24q_processed.png&w=3840&q=75)
Transcribed Image Text:Requlred Informatlon
[The following information applies to the questions displayed below.]
On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in
20 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
1-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the
tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mllllons. Round "Market Interest rate" to 1
decimal place. Round your final answers to the nearest whole dollar.)
Bond Characteristics
Amount
Face amount
39,100,000
Interest payment
Periods to maturity
Market interest rate
Issue price
1-b. The bonds will issue at
OA Discount
OA Premium
O Face amount
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