Exercise $9-22($Algo$)$ Part $1$

On January $1,2024,$ Water World Issues $$25\mathrm{.}6$ million of $6\%$bonds, due in $20$ years, with interest payable semiannually on June $30$ and December $31$ each year. Water World intends to use the funds to build the worlds largest water avalanche and the tornado $-$ giant outdoor wortex in which riders spin in a progressively smaller and faster circles until they drop through a small tunnel at the bottom.v

Required:

$1-$a$.$ If the market rate is $5\%,$ 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?

Complete this question by entering your answers in the tabs below.

If the market rate is $5\%,$ calculate the issue price. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Note: Use tables,

Excel, or a financial calculator. Enter your answers in dollars not in millions $($i$.$e$.,$ $$5\mathrm{.}5$ million should be entered as

$5,500,000.$ Round your final answers to the nearest whole dollar.$)$