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, Ocean World issues $39.1 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 (Algo) Part 3 3-a. If the market rate is 10%, 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?
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, Ocean World issues $39.1 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 (Algo) Part 3 3-a. If the market rate is 10%, 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A 112.
![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, Ocean World issues $39.1 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 (Algo) Part 3
3-0. If the market rate is 10%, 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.
Req 3a
- DURIN INNUP AR NUR Humour
Req 3b
Required information
complete uns question by entering your answers in the taps pelow.
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. 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.)
Bond Characteristics
Face amount
Interest payment
Number of periods
Market interest rate
Issue price
Req 3a
$
Amount
Req 3b
39,100,000
< Prev
Exercise 9-21 (Algo) Part 3
3-a. If the market rate is 10%, 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.
Req 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?
B
8 of 8
of 8
< Req 3a
Next
Req3b>
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe42d6f28-4b0c-488f-a318-3a22fcef86c1%2Fa56cdbb1-71ab-4669-ba09-375075aee68f%2Fzgjq36b_processed.png&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, Ocean World issues $39.1 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 (Algo) Part 3
3-0. If the market rate is 10%, 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.
Req 3a
- DURIN INNUP AR NUR Humour
Req 3b
Required information
complete uns question by entering your answers in the taps pelow.
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. 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.)
Bond Characteristics
Face amount
Interest payment
Number of periods
Market interest rate
Issue price
Req 3a
$
Amount
Req 3b
39,100,000
< Prev
Exercise 9-21 (Algo) Part 3
3-a. If the market rate is 10%, 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.
Req 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?
B
8 of 8
of 8
< Req 3a
Next
Req3b>
D
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