On January 1, 2021, Water World issues $26 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the worlds largest water avalanche and the tornado a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom.
[The following information applies to the questions displayed below.) On January 1, 2021. Water World issues $26 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the "tornado"- a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom. Required: 1-a. If the market rate is 6%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round your final answers to the nearest whole dollar.) Amount $ 26,000,000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 1-b. The bonds will issue at Face amount A Discount A Premium Required information [The following information applies to the questions displayed below. On January 1, 2021, Water World issues $26 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the tornado- a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom. 2-a. If the market rate is 7%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount $ 26,000,000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price es 2-b. The bonds will issue at O A Discount Face amount A Premium Required information [The following information applies to the questions displayed below.) On January 1, 2021, Water World issues $26 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world's largest water avalanche and the tornado"- a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom. 3-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your final answers to the nearest whole dollar.) Amount $ 26.000.000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount Face amount A Premium Prey CD 12 of 13 Next >
