Exercise 9-18A Calculate the issue price of bonds (L09-7) The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $40.4 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 9-18A Part 1 Required: 1-a. If the market rate is 8%, calculate the issue price, (FV of $1. PV of $1. EVA of S1, 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. Round your final answers to the nearest whole dollar) Amount 40,400,000 $ Band Characteristics Face amount Interest payment Periods to maturity Market interest rate Isso price Exercise 9-18A Calculate the issue price of bonds (L09-7) [The following information applies to the questions displayed below) On January 1, 2021, Frontier World issues $40.4 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 9-18A Part 2 2-a. If the market rate is 9%, calculate the issue price. (FV of $1. PV of $1. FVA 0f $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. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount 40,400,000 $ Face amount Interest payment Periods to maturity Market interest rate Issue price Exercise 9-18A Calculate the issue price of bonds (LO9-7) (The following information applies to the questions displayed below) On January 1, 2021, Frontier World issues $40.4 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 9-18A Part 3 3-a. If the market rate is 10%, calculate the issue price. (FV of S1. PV of $1. EVA 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. Round your final answers to the nearest whole dollar) Amount 40,400,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price
