Question: Question 8: On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30

Question 8:

On January 1, 2018, Frontier World issues $39.8 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 $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.)

Bond Characteristics	Amount
Face amount
INterest payment
market interest rate
periods to maturity
issue price

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