!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 semiannuallyon June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, awater 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 thetables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1decimal place. Round your final answers to the nearest whole dollar.)Bond CharacteristicsAmountFace amount40,600,000Interest paymentPeriods to maturityMarket interest rateIssue price%24

Solution 1a: Computation of bond price Table values are based on: n= 30 i= 3.50%…

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.)

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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On January 1, 2021, Frontier World issues $39.3 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 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 millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount $39,300,000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue atmultiple choice A Discount A Premium Face amount
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