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On January $1,2024,$ Ocean World issues $$39\mathrm{.}4$ 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.

Required:

$1-$a$.$ If the market rate is $8\%,$ calculate the issue price. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

$1-b.$ Will the bonds issue at face amount, a discount, or a premium?

Complete this question by entering your answers in the tabs below.

Req $1$a

Req $1b$

If 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. Enter your answers in dollars not in millions $($i$.$e$.,$ $$5\mathrm{.}5$ million should be entered as $5,500,000).$ Round your final answers to the nearest whole dollar.$)$

$\backslash$table$[[$Bond Characteristics,Amount$],[$Face amount,$39,400,000$