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Exercise $9-21($Static$)$ Calculate the issue price of bonds $($LO$9-7)$

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On January $1,2024,$ Frontier World issues $$41$ 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.

Exercise $9-21($Static$)$ Part $3$

$3-$a$.$ If the market rate is $10\%,$ calculate the issue price. $($FV of $$1,PV$ of $$1,$ FVA of $$1,$ and PVA of $$1)$

$3-$b$.$ Will the bonds issue at face amount, a discount, or a premium?

Complete this question by entering your answers in the tabs below.

Req $3$b

If the market rate is $10\%,$ 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. Enter your answers in dollars not in millions $($i$.$e$.,$ $$5\mathrm{.}5$

million should be entered as $5,500,000.)$