On January 1 , 2 0 2 4 , a company issues $ 3 9 8 million of 8 bonds, due in 1 5 years, with interest payable semiannually on June 3 0 and December 3 1 each year Required If the market rate 7 , calculate the issue price ( EV of $ 1 PV of $ 1 EVA of $ 1 and PVA of $ 1 1 b Will the bonds Issue at face amount, a discount, or a premium 2 a If the market rate is calculate the issue price ( of $ 1 PV of $ 1 FVA of $ 1 and PVA of $ 1 ) 2 b the bonds issue at face amount, a discount, or premium 3 a If the market rate is 9 , calculate the issue price ( EV of $ 1 , PV of $ 1 FVA of $ 1 and PVA of $ 1 ) 3 b Will the bonds issue at face amount, a discount, or a premium

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Question: On January 1 , 2 0 2 4 , a company issues $ 3 9 . 8 million of 8 % bonds, due in 1

On January

1, 2024,

a company issues $

39.8

million of

8 %

bonds, due in

15

years, with interest payable semiannually on June

30

and December

31

each year. Required: If the market rate

7 %,

calculate the issue price

(

EV of $

1

PV of $

1

EVA of $

1

and PVA of $

1 1 -

.

Will the bonds Issue at face amount, a discount, or a premium?

2 -

.

If the market rate is

%

calculate the issue price.

(

of $

1

PV of $

1

FVA of $

1

and PVA of $

1) 2 -

.

the bonds issue at face amount, a discount, or premium?

3 -

.

If the market rate is

9 %,

calculate the issue price.

(

EV of $

1,

PV of $

1

FVA of $

1

and PVA of $

1) 3 -

.

Will the bonds issue at face amount, a discount, or a premium?

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