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 2 2-a. If the market rate is 9%, calculate the issue price. (EV of $1, PV of $1. EVA of $1, and PVA of $1) 2-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 2a Reg 2b 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 (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 $ Amount 39,100,000
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 2 2-a. If the market rate is 9%, calculate the issue price. (EV of $1, PV of $1. EVA of $1, and PVA of $1) 2-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 2a Reg 2b 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 (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 $ Amount 39,100,000
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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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 2
2-8. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. FVA of $1, and PVA of $1)
2-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 2a
Reg 2b
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 (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
$
Amount
39,100,000
< Req 20
Req 2b >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d7ea0db-350a-45a5-b9d8-f4791e76b248%2Ff655c89b-a934-4cf3-b596-c130477fa284%2Foj8llz6_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, 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 2
2-8. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. FVA of $1, and PVA of $1)
2-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 2a
Reg 2b
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 (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
$
Amount
39,100,000
< Req 20
Req 2b >
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