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On January 1, 2021, Wild Rapids Water Park issues $400 million of 8% bonds to finance expansion. The bonds are due in 15 years, with
On January 1, 2021, Wild Rapids Water Park issues $400 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year, 3-a. If the market rate is 9%, calculate the issue price (FV of $1. PV of $1. FVA of $1. and PVA of 51) (Use appropriate factor(s) 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. Round your final answers to the nearest whole dollar.) Amount 40,000,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount A Premium
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