Exercise $9-21($Algo$)$ Calculate the issue price of bonds $($LO$9-7)$

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On January $1,2024,$ Tropical World issues $$39\mathrm{.}8$ 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.

Exercise $9-21($Algo$)$ Part $1$

Required:

$1-$a$.$If the market rate is $7\%,$ calculate the issue price.$($FV of $$1,$PV of $$1,$FVA of $$1,$ and$$PVA of $$1)$

$1-$b$.$Will the bonds issue at face amount, a discount, or a premium?