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please answer parts 1,2,3 and explain how you got to answer The following information applies to the questions displayed below.] On January 1, 2018, Water
please answer parts 1,2,3 and explain how you got to answer
The following information applies to the questions displayed below.] On January 1, 2018, Water World issues $24.8 million of 6% bonds, due in 20 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. 1. value: Required information 7.69 points Required: 1-a. If the market rate is 5%, 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. Enter your answers in dollars not in millions.) Bond Characteristics Amount 24,800,000 ... Face amount . . Interest payment $ 6: Market interest rate Periods to maturity Issue price 1-b. The bonds will issue at A Discount Face amount A Premium 2. value: Required information 7.69 points 2-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. Round "Market interest rate" to 1 decimal place. Enter your answers in dollars not in millions.) Bond Characteristics Amount Face amount $ 24,800,000 Interest payment Market interest rate Periods to maturity Issue price 2-b. The bonds will issue at A Premium A Discount Face amount Hints References eBook & Resources Hint #1 3. value: 7.69 points Required information 3-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. Enter your answers in dollars not in millions.) Bond Characteristics Amount $ 24,800,000 Face amount Interest payment Market interest rate Periods to maturity Issue price 3-b. The bonds will issue at Face amount A Discount A PremiumStep by Step Solution
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