On January $1,2024,$ Water World issues $$26$ million of $7\%$ bonds, due in $10$ years, with interest payable semiannually on June $30$ and December $31$ each year. Water World intends to use the funds to build the world's largest water avalanche and the "tornado" $-$ a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom.

Required:

$1-$a$.$ If the market rate is $6\%,$ calculate the issue price. $($EV 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?

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Req $1a$

If the market rate is $6\%,$ calculate the issue price. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Note: Use tables, Excel, or a financial calculator. Enter your answers in dollars not in millions $($i$.$e$.,$ $$5\mathrm{.}5$ million should be entered as $5,500,000).$

Round your final answers to the nearest whole dollar.$)$

$\backslash$table$[[$Bond Characteristics,Amount$],[$Face amount,$$8$