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On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December
On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 5% and the bonds issue at face amount. Required: 1a. Calculate the issue price of a bond. 1b. Complete the first three rows of an amortization schedule. (EV of $1. PV of $1. FVA of $1, and PVA of $1) Assume that the market interest rate is 6% and the bonds issue at a discount. 2a. Calculate the issue price of a bond. 2b. Complete the first three rows of an amortization schedule. (EV of $1, PV of $1. EVA of $1, and PVA of $1) Assume that the market interest rate is 4% and the bonds issue at a premium. 3a. Calculate the issue price of a bond. 3b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Complete this question by entering your answers in the tabs below
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