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 $39.8 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. xercise 9-21 (Algo) Part 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) b. Will the bonds issue at face amount, a discount, or a premium?
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 $39.8 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. xercise 9-21 (Algo) Part 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) b. Will the bonds issue at face amount, a discount, or a premium?
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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![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 $39.8 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 rice, 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. (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 3b
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 (.e., $5.5 million should be entered as
5,500,000). Round your final answers to the nearest whole dollar.)
Amount
Req 3a
Bond Characteristics
Face amount
Interest payment
Number of periods
Markel interest rale
Issue price
$
39,800,000
Req Ja
Req 3b >
Complete this question by entering your answers in the tabs below.
Req 3a
Reg 3b
Will the bonds issue at face amount, a discount, or a premium?
Will the bonds issue at face amount, a discount, or a premium?
<Roq 3a
Roq 3b >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0cc390e-8ccd-4800-a799-bde8666fb6d9%2F4e722a3d-8ebb-4a92-8b0f-50f895daa5ea%2Faqgaqsd_processed.jpeg&w=3840&q=75)
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 $39.8 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 rice, 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. (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 3b
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 (.e., $5.5 million should be entered as
5,500,000). Round your final answers to the nearest whole dollar.)
Amount
Req 3a
Bond Characteristics
Face amount
Interest payment
Number of periods
Markel interest rale
Issue price
$
39,800,000
Req Ja
Req 3b >
Complete this question by entering your answers in the tabs below.
Req 3a
Reg 3b
Will the bonds issue at face amount, a discount, or a premium?
Will the bonds issue at face amount, a discount, or a premium?
<Roq 3a
Roq 3b >
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