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On January 1, 2018, Frontier world issues $40.1 million or 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December
On January 1, 2018, Frontier world issues $40.1 million or 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. 4 Required information value 1.00 points Required: 1-a, lf the market rate is 8%, calculate the issue price (Ey of St. Pyotst. EVA of $1 and PVA of $1) (Use appropriate factors) 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 ) Bond Characteristics Amount 40.100,000 Face amount interest payment Market interest rate Periods to maturity issue price
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