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Required Information [The following Information applies to the questions displayed below.] On January 1, 2021, Frontier World Issues $39.8 million of 8% bonds, due
Required Information [The following Information applies to the questions displayed below.] On January 1, 2021, Frontier World Issues $39.8 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. 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.) Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount A Premium Face amount Amount $ 39,800,000
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