Question
On January 1, 2024, Ocean World issues $40.9 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December
On January 1, 2024, Ocean World issues $40.9 million of 8% bonds, due in 15 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.
1-a. If the market rate is 7%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Will the bonds issue at face amount, a discount, or a premium?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
