On January 1 , 2 0 2 4 , Adventure World issues $ 3 9 . 9

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Question:

On January

1, 2024,

Adventure World issues $

39.9

million of

7 %

bonds, due in

10

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 -

.

If the market rate is

6 %,

calculate the issue price.

(

FV of $

1,

PV of $

1,

FVA of $

1,

and PVA of $

1)

1 -

.

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

Posted Date: May 07, 2024 02:41 AM

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On January 1 , 2 0 2 4 , Adventure World issues $ 3 9 . 9

Question:

Expert Answer:

To calculate the issue price of the bonds we can use the present value formula for bonds PV C 1 1 rn ... View the full answer

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