On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years,...
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On January 1, 2024, Adventure World issues $40.4 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. Required information Complete this question by entering your answers in the tabs below. Req 28 Req 2b If the market rate is 9%, 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. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price Amount $ 40,400,000 Check Complete this question by entering your answers in the tabs below. Req 2a Req 2b Will the bonds issue at face amount, a discount, or a premium? Will the bonds issue at face amount, a discount, or a premium? < Req 2a Reg 25 On January 1, 2024, Adventure World issues $40.4 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. Required information Complete this question by entering your answers in the tabs below. Req 28 Req 2b If the market rate is 9%, 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. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price Amount $ 40,400,000 Check Complete this question by entering your answers in the tabs below. Req 2a Req 2b Will the bonds issue at face amount, a discount, or a premium? Will the bonds issue at face amount, a discount, or a premium? < Req 2a Reg 25
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