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Exercise 9 - 2 1 ( Algo ) Calculate the issue price of bonds ( LO 9 - 7 ) Skip to question [ The

Exercise 9-21(Algo) Calculate the issue price of bonds (LO9-7)
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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 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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