Required information [The following information applies to the questions displayed below.] On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) fro- tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 40,000,000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premium O Face amount
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) fro- tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 40,000,000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premium O Face amount
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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