Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) (The following information applies to the questions displayed below) On January 1, 2021. Frontier World issues $39.5 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. Exercise 9-18A Part 1 Required: 1-a. If the market rate is 7%, calculate the issue price. (EV of $1. PV of $1. EVA of $1. and PVA of 5) (Use appropriate factor(s) from the tables provided. Do not round Interest rate factors. Enter your answers in dollars not in millions. Round Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount 39,500,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate losue price Required information Exercise 9-18A Calculate the issue price of bonds (L09-7) (The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $39.5 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. Exercise 9-18A Part 2 2. the market rate is 8%, 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. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount 39,500,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market Interest rate Issue price Exercise 9-18A Calculate the issue price of bonds (L09-7) [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World Issues $39.5 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, Exercise 9-18A Part 3 3-a. If the market rate is 9%, 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. Round Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount 39,500,000 Bond Characteristics Face amount Interest payment Periods to maturity Market Interest rate Issue price
