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 $39.4 million of 96 bonds, due in 20 years, with interest payable semiannual on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. xercise 9-21 (Algo) Part 1
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 $39.4 million of 96 bonds, due in 20 years, with interest payable semiannual on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. xercise 9-21 (Algo) Part 1
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, Ocean World issues $39.4 million of 96 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 1
Required:
1-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Will the bonds issue at face amount, a discount, or a premium?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd77c663-80a1-4b3e-ae2b-d01ffd3ce2cb%2Fd02c6e8f-1e10-4432-8ed2-5cc812af864f%2F6xzdlyp_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 $39.4 million of 96 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 1
Required:
1-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Will the bonds issue at face amount, a discount, or a premium?
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