Question: please help with the issue price Check my work [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues
Check my work [The following information applies to the questions displayed below.) On January 1, 2021, Frontier World issues $40.0 million of 8% bonds, due in 15 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. 3-a. If the market rate is 9%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of S1) (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.) Amount $ $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate issue price 40,000,000 1,600,000 30 4.5%
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