On January 1, 2015, Frontier World issues $40.3 million of 8% bonds, due in 15 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 7%, 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

Face Amount -

Interest Payment -

Market Interest Rate -

Periods to Maturity -

Issue Price -

The bonds will issue at

A Premium

A Discount

Face amount

B) 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

Face Amount -

Interest Payment -

Market Interest Rate -

Periods to Maturity -

Issue Price -

The bonds will issue at

Face amount

A Premium

A Discount

C)

If the market rate is 9%, 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)

The bonds will issue at

	A Premium
	A Discount
	Face amount