Requlred Informatlon [The following information applies to the questions displayed below.) On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 39,100,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount OA Premium O Face amount
Requlred Informatlon [The following information applies to the questions displayed below.) On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 39,100,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount OA Premium O Face amount
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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