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Required information [The following information applies to the questions displayed below. On January 1, 2021, Water World issues $26 million of 7% bonds, due in
Required information [The following information applies to the questions displayed below. On January 1, 2021, Water World issues $26 million of 7% bonds, due in 10 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. 3-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, anc PVA of $1 (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your final answers to the nearest whole dollar.) Amount 26,000,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Premium A Discount Face amount
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