Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

if you can show your work please! Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) [The following information applies to the questions

if you can show your work please!
image text in transcribed
Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below) On January 1, 2021, Frontler World issues $40.5 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 3 l each year. The proceeds will be used to bulid 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 matket rate is 8\%, calculate the issue price. (FV of S1. PV of \$1. EVA of S1, and PVA of S1) (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.) 3.b. The bondis will issue at A Discount A Premium Face amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions