On January 1, 2015, Frontier World issues $40.4 million of 9% bonds, due in 20 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.

If the market rate is 8%, calculate the first interest payment due and the issue price of the bond.

If the market rate is 9%, calculate the first interest payment due and the issue price of the bond.

the market rate is 10%, calculate the first interest payment due and the issue price of the bond.