On January 1, 2018, Frontier World issues $40.7 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.

On January 1, 2018, Frontier World issues $40.7 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, al in one ride. value: Required information 10.00 points Required 1 a. If the market rate is 8%, calculate the issue price. FV of $1 of A of $1. and PVA of $1 answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.) Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your Bond Characteristics Amount S 40,700,000 Face amount Interest payment Market interest rate Periods to maturity Issue price 1-b. The bonds will issue at A Discount Face amount A Premium