Exercise $9-21($Algo$)$ Calculate the issue price of bonds $($LO$9-7)$

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On January $1,2024,$ Ocean World issues $$39\mathrm{.}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 $1$

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?