Question
Required information. [The following information applies to the questions displayed below.] On January 1, 2024, Ocean World issues $39.1 million of 9% bonds, due
Required information. [The following information applies to the questions displayed below.] On January 1, 2024, Ocean World issues $39.1 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. 2-a. If the market rate is 9%, calculate the issue price. (EV of $1, PV of $1, FVA of $1, and PVA of $1) 2-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. ces Req 2a Req 2b 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. Enter your answers in dollars not in millions (ie., $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Interest payment Number of periods Market interest rate Issue price Amount $ 39,100,000
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