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On January 1, 2018, Frontier World issues $40.6 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.

1-a. If the market rate is 7%, 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:

Face Amount?

Interest payment?

Market interest rate?

Periods to maturity?

Issue price?

1-b. The bonds will issue at

	A Premium
	A Discount
	Face amount

1-c. 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) 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:

Face amount?

Interest payment?

Market interest rate?

Periods to maturity?

Issue price?

1-d. The bonds will issue at

	Face amount
	A Discount
	A Premium

1-e. 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:

Face amount?

Interest payment?

Market Interest rate?

Periods to maturity?

Issue price?

1-f. The bonds will issue at

	A Discount
	Face amount
	A Premium

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