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Required information Exercise 9-21 (Algo) Calculate the issue price of bonds (L09-7) [The following information applies to the questions displayed below.] On January 1, 2024, Tropical World issues $39.2 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. Exercise 9-21 (Algo) Part 3 3-6. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. EVA 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. Reg 3a Req 3b If the market rate is 9%, calculate the issue price.(FV of $1. PV of $1, FVA of $1, and PVA of S1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millons (i.e, $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.)

Required information Exercise 9-21 (Algo) Calculate the issue price of bonds (L09-7) [The following information applies to the questions displayed below.] On January 1, 2024, Tropical World issues $39.2 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. Exercise 9-21 (Algo) Part 3 3-6. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. EVA 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. Reg 3a Req 3b If the market rate is 9%, calculate the issue price.(FV of $1. PV of $1, FVA of $1, and PVA of S1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millons (i.e, $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.)

Essentials Of Investments
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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If the market rate is 9%, 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.) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price Req 3a $ Req 3b Amount 39,200,000 Req Ja Complete this question by entering your answers in the tabs below. Will the bonds issue at face amount, a discount, or a premium? Will the bonds issue at face amount, a discount, or a premium? Req 3b > < Req 3a Reg 3b >
Transcribed Image Text:If the market rate is 9%, 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.) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price Req 3a $ Req 3b Amount 39,200,000 Req Ja Complete this question by entering your answers in the tabs below. Will the bonds issue at face amount, a discount, or a premium? Will the bonds issue at face amount, a discount, or a premium? Req 3b > < Req 3a Reg 3b >
Required information Exercise 9-21 (Algo) Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2024, Tropical World issues $39.2 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. Exercise 9-21 (Algo) Part 3 3-a. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. EVA 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. Reg Ja Reg 3b If the market rate is 90%, 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.)
Transcribed Image Text:Required information Exercise 9-21 (Algo) Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2024, Tropical World issues $39.2 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. Exercise 9-21 (Algo) Part 3 3-a. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. EVA 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. Reg Ja Reg 3b If the market rate is 90%, 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.)
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