On January 1, 2018, Frontier World issues $39.3 million of 7% bonds, due in 10 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.

3-a. If the market rate is 8%, calculate the issue price. EvofS1, PV of S1, FVA of S1. and PVA of S1) (Us Bond Characteristics Amount S 39,300,000 Face amount Interest payment Market interest rate Periods to maturity Issue price 3-b. The bonds will issue at O A Discount O A Premium O Face amount Hints References eBook & Resources