On January $\mathrm{ 1},2024,$ Lakeside Amusement Park issues $$690,000$ of $5\%$ bonds, due in $20$ years, with interest payable semiannually on June $30$ and December $31$ each year.

Assume that the market interest rate is $5\%$ and the bonds issue at face amount.

Required:

$1$a$.$ Calculate the issue price of a bond.

$1$b$.$ Complete the first three rows of an amortization schedule. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Assume that the market interest rate is $6\%$ and the bonds issue at a discount.

$2$a$.$ Calculate the issue price of a bond.

$2$b$.$ Complete the first three rows of an amortization schedule. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Assume that the market interest rate is $4\%$ and the bonds issue at a premium.

$3$a$.$ Calculate the issue price of a bond.

$3$b$.$ Complete the first three rows of an amortization schedule. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

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

Required $3$B

Calculate the issue price of a bond.

Answer rating: 100% (QA)

To calculate the issue price of a bond we can use the formula for the present valu... View the full answer