Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] On January 1, 2024, Ocean World issues $39.7 million of 9% bonds, due in 20 years,
[The following information applies to the questions displayed below.] On January 1, 2024, Ocean World issues $39.7 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 buid 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, (EV of \$1. PV of \$1, PVA of S1, and PVA of \$D) 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. If the market rate is B4, caiculate the issue price. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) (Use appropriate foctor(s) from the tables provided, Enter your answers in dollars not in metions (Le.4, 55.5m milion should be entered as 5,500,000) Alound your final answers to the nearest whole dollae) Required information [The following information applies to the questions displayed below.] On January 1, 2024. Ocean World issues $39.7 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. (EV of \$1. PV of S1. EVA of \$1. and PVA of \$11) 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. Will the bonds issue ot face amount, a discount, or a premium
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started