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Required information [ The following information applies to the questions displayed below. ] On January 1 , 2 0 2 1 , Frontier World issues
Required information
The following information applies to the questions displayed below.
On January Frontier World issues $ million of bonds, due in years, with interest payable semiannually
on June and December 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.
a If the market rate is calculate the issue price. FV of $ PV of $ FVA of $ and PVA of $Use appropriate factors from the
tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to
decimal place. Round your final answers to the nearest whole dollar.
b The bonds will issue at
A Discount
A Premium
Face amount
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