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Req 3a Req 3b If the market rate is 10%, 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 (i.e., $5.5 million should be entered as 5,500,000).) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 41,000,000 1,845,000 40 5% < Req 3a Req 3b >

Req 3a Req 3b If the market rate is 10%, 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 (i.e., $5.5 million should be entered as 5,500,000).) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 41,000,000 1,845,000 40 5% < Req 3a Req 3b >

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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! Required information Exercise 9-21 (Static) Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2024, Frontier World issues $41 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. Exercise 9-21 (Static) Part 3 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 3-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 3a Req 3b If the market rate is 10%, 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 (i.e., $5.5 million should be entered as 5,500,000).) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 41,000,000 1,845,000 40 5% < Req 3a Req 3b >
Transcribed Image Text:! Required information Exercise 9-21 (Static) Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2024, Frontier World issues $41 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. Exercise 9-21 (Static) Part 3 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 3-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 3a Req 3b If the market rate is 10%, 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 (i.e., $5.5 million should be entered as 5,500,000).) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price $ $ Amount 41,000,000 1,845,000 40 5% < Req 3a Req 3b >
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