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Business, 17.06.2020 20:57 JasJackson

On January 1, 2021, Frontier World issues $39.5 million of 8% bonds, due in 15 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 7%, calculate the issue price. V of $1. PV of $1 EVA of $1. and PVA OL51) (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. Round your final answers to the nearest whole dollar)
Bond Characteristics Amount
Face amount 39,800,000
Interest payment
Ponds to maturity
Market interest rate
issue price
1-b. The bonds will issue at
A Discount
A Premium
Face amount

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On January 1, 2021, Frontier World issues $39.5 million of 8% bonds, due in 15 years, with interest...
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