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how do you get issue price ? Required Information [The following information applies to the questions displayed below.) On January 1, 2021. Wild Rapids Water
how do you get issue price ?
Required Information [The following information applies to the questions displayed below.) On January 1, 2021. Wild Rapids Water Park issues $40.5 million of 7% bonds to finance expansion. The bonds are due in 10 years, with interest payable semiannually on June 30 and December 31 each year, 3-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV or $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. Round your final answers to the nearest whole dollar.) $ $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price Amount 40,500,000 1.417.500 20 4.0% Step by Step Solution
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