questions displayed below.] On January 1, 2021, Frontier World issues $40.6 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. Cequired: -a. If the market rate is 7%, calculate the issue price. (EV of $1, PV of $1, EVA of $1, and PVA of $1) (Use appropriate factor(s) from the ables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 lecimal place. Round your final answers to the nearest whole dollar.)
questions displayed below.] On January 1, 2021, Frontier World issues $40.6 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. Cequired: -a. If the market rate is 7%, calculate the issue price. (EV of $1, PV of $1, EVA of $1, and PVA of $1) (Use appropriate factor(s) from the ables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 lecimal place. Round your final answers to the nearest whole dollar.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11E
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Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, Frontier World issues $40.6 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 the issue price. (FV of $1, PV of $1. EVA 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. Round "Market interest rate" to 1
decimal place. Round your final answers to the nearest whole dollar.)
Bond Characteristics
Amount
Face amount
40,600,000
Interest payment
Periods to maturity
Market interest rate
Issue price
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed18415a-af27-44e8-aa80-ad5d454cc154%2F814eb192-4cf8-4052-91d0-04ccac62e858%2Fkig2tqs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, Frontier World issues $40.6 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 the issue price. (FV of $1, PV of $1. EVA 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. Round "Market interest rate" to 1
decimal place. Round your final answers to the nearest whole dollar.)
Bond Characteristics
Amount
Face amount
40,600,000
Interest payment
Periods to maturity
Market interest rate
Issue price
%24
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