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Exercise $9-22($Algo$)$ Calculate the issue price of bonds $($LO$9-7)$

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On January $1,2024,$ Water World issues $$24\mathrm{.}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.

Exercise $9-22($Algo$)$ Part $3$

$3-$a$.$ If the market rate is $7\%,$ calculate the issue price. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

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

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