1)On January 1, 2015, Frontier World issues $39.9 million of 7% bonds, due in 10 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.

if the market rate is 6%, 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 "Market interest rate" to 1 decimal place.)

Bonds Characteristics Amount

Face Amount $39,900,000 Interest payment ?? market interest rate ?? periods to maturity ?? issue price ??

2) The bonds will issue at (chose one)

	A Discount
	A Premium
	Face amount

3) If the market rate is 7%, calculate the issue price. ****SAMe numbers, but the market rate was changed from 6 to 7%). How much will it be?

Bonds Characteristics Amount

Face Amount $39,900,000 Interest payment ?? market interest rate ?? periods to maturity ?? issue price ??

4)

The bonds will issue at(choose one) face amount? a premium? or a discount?