Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2021, 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 9-18A 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) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions.) Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price Amount S 41,000,000
Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2021, 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 9-18A 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) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions.) Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price Amount S 41,000,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Kmu
![Required information
Exercise 9-18A Calculate the issue price of bonds (LO9-7)
[The following information applies to the questions displayed below.]
On January 1, 2021, 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 9-18A 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) (Use appropriate factor(s) from
the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions.)
Bond Characteristics
Face amount
Interest payment
Periods to maturity
Market interest rate
Issue price
Amount
S 41,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d158d98-5f96-411d-91fb-61c3e9643a73%2F074b32da-5037-4915-8d7e-adca3502dd7c%2F0513nw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 9-18A Calculate the issue price of bonds (LO9-7)
[The following information applies to the questions displayed below.]
On January 1, 2021, 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 9-18A 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) (Use appropriate factor(s) from
the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions.)
Bond Characteristics
Face amount
Interest payment
Periods to maturity
Market interest rate
Issue price
Amount
S 41,000,000
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