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0 Required information [The following information applies to the questions displayed below) On January 1, 2021. Frontier World issues $41 million of 4,5% bonds, due
0 Required information [The following information applies to the questions displayed below) On January 1, 2021. Frontier World issues $41 million of 4,5% bonds, due in 40 years, with interest payable annually on 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, Required: 1-a. If the market rate is 4%, 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round your final answers to the nearest whole dollar) ses Amount 41,000,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 1-b. The bonds will issue at Face amount O A Discount A Premium On January 1, 2021. Frontier World issues $41 million of 4.5% bonds, due in 40 years, with interest payable annually on 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. 2-a. If the market rate is 4.5%, 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round your final answers to the nearest whole dollar.) Amount 41,000,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at O A Discount O A Premium O Face amount On January 1, 2021, Frontier World issues $41 million of 4.5% bonds, due in 40 years, with interest payable annually on 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. 3-a. If the market rate is 5%, 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. Do not round interest rate factors. Enter your answers in dollars not in millions.) Amount $ 41,000,000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at O A Premium Face amount O A Discount
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