On January $1,2021,$ Frontier World issues $$39\mathrm{.}1$ 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)($Use appropriate factor$($s$)$ 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.$)$

Answer rating: 100% (QA)

To calculate the issue price of the bonds we can use the present val... View the full answer