On Jan 2021, Frontier World issues $41 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.

1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.

2. If the market rate is 9%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.

3. If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.