On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20...
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On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest payable semlannually 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 9-18B Part 2 2-a. If the market rate is 9%, calculate the issue price. (EV of $1, PV of $1. EVA of $1, and PVA of $1 (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Amount %24 39,100,000, Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premlum O Face amount On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest payable semlannually 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 9-18B Part 2 2-a. If the market rate is 9%, calculate the issue price. (EV of $1, PV of $1. EVA of $1, and PVA of $1 (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Amount %24 39,100,000, Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premlum O Face amount
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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