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help wirh 1-a & 1-b On January 1,2024 , Ocean World issues $39.1 million of 9% bonds, due in 20 years, with interest payable semiannually
help wirh 1-a & 1-b
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. 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? Complete this question by entering your answers in the tabs below. If the market rate is 8%, 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. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Step by Step Solution
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