Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2018. Water World issues $24.0 million of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December
On January 1, 2018. Water World issues $24.0 million of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year waterworld intends to use the funds to build the world's largest water avalanche and the "tornado" agiant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom Required Information 10.00 points Required: 1 a if the market rate is 4%, calculate the issue price. 1 F A of $1 and P interest rate" to 1 decimal place. Enter your answers in dollars not in millions.) f 1) Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round Market Bond Characteristics 24,000,000 Face amount Interest payment Market interest rate Periods to maturily ssuB prIce 1-b. The bonds will issue at A Premiurn Face amount A Discount Required information 10.00 points 2 f the market rate s 5% calculate the issue n e F of 1 P 1 of 1 and Interest rate" to 1 declmal place. Enter your answers In dollars not In millions.) Ao 1)(Use appropriate factor s from the tables provided. Do not round interest rate factors. Round Market Bond Characteristics Face amount Interest payment Market interest rate Periods to maturity ssue price $24,000,000 2-b. The bonds will issue at A Discount Face amount A Premium Required information 10.00 points 3-a. the market rate is 6%, calculate he issue price. O PV of 1 F A of $ and interest rate" to 1 decimal place. Enter your answers in dollars not in millions.) 0 1) Use appropriate actor s from the tables provided. Do not round inter est efactors Round Market Bond Characteristics Face amount Interest payment Market interest rate Periods to maturity Issue price Amount $ 24,000,000 3-b. The bonds will issue at A Discount A Premium Face amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started