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J ok nt int O ences On January 1, 2024, Ocean World issues $39.1 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 the issue price. (EV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req la 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. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Req 1b Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 39,100,000 1,564,000 40 4.5%

J ok nt int O ences On January 1, 2024, Ocean World issues $39.1 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 the issue price. (EV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req la 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. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Req 1b Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 39,100,000 1,564,000 40 4.5%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ok ht nces On January 1, 2024, Ocean World issues $39.1 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 the issue price. (FV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req la 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. Enter your answers in dollars not in millions (1.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Amount Req 1b Bond Characteristics Face amount Interest payment Number of periods Market interest rate. Issue price $ $ 39,100,000 1,564,000 40 4.5%
Transcribed Image Text:ok ht nces On January 1, 2024, Ocean World issues $39.1 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 the issue price. (FV of $1. PV of $1. EVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req la 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. Enter your answers in dollars not in millions (1.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Amount Req 1b Bond Characteristics Face amount Interest payment Number of periods Market interest rate. Issue price $ $ 39,100,000 1,564,000 40 4.5%
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