On january 1, 2018, frontier world issues $39.3 million of 7% bonds, due in 10 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.
1-a. if the market rate is 6%, 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.)
1-b. the bonds will issue at
a discount, premium or face amount?
2-a. if the market rate is 7%, 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.)
2-b. the bonds will issue at
a discount, premium or face amount?
3-a. 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. do not round interest rate factors. enter your answers in dollars not in millions. round "market interest rate" to 1 decimal place.)
3-b. the bonds will issue at
a discount, premium or face amount?