Requlred Informatlon [The following information applies to the questions displayed below.) On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 39,100,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount OA Premium O Face amount
Requlred Informatlon [The following information applies to the questions displayed below.) On January 1. 2021, Wild Rapids Water Park issues $39.1 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 3-a. If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use approprlate factor(s) from the tables provided. Do not round Interest rate factors. Enter your answers In dollars not In mlons. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 39,100,000 Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at A Discount OA Premium O Face amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Required Information
**[The following information applies to the questions displayed below.]**
On January 1, 2021, Wild Rapids Water Park issues $391 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
#### 3-a.
If the market rate is 10%, calculate the issue price. (Use appropriate factor(s) from the tables provided. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.)
**Bond Characteristics and Table:**
- **Face amount:** $39,100,000
- **Interest payment:** [Blank]
- **Periods to maturity:** [Blank]
- **Market interest rate:** [Blank]
- **Issue price:** [Blank]
#### 3-b.
The bonds will issue at:
- ○ A Discount
- ○ A Premium
- ○ Face amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c03d17e-03c0-44bf-860a-ef4a718bf31e%2Fb8185b63-7e73-4e47-8bb8-9419e74b55df%2Ff5hdvad_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
On January 1, 2021, Wild Rapids Water Park issues $391 million of 9% bonds to finance expansion. The bonds are due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
#### 3-a.
If the market rate is 10%, calculate the issue price. (Use appropriate factor(s) from the tables provided. Round "Market Interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.)
**Bond Characteristics and Table:**
- **Face amount:** $39,100,000
- **Interest payment:** [Blank]
- **Periods to maturity:** [Blank]
- **Market interest rate:** [Blank]
- **Issue price:** [Blank]
#### 3-b.
The bonds will issue at:
- ○ A Discount
- ○ A Premium
- ○ Face amount
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