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On January 1,2024, a company issues $39.8 million of 8% bonds, due in...

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Accounting

On January 1,2024, a company issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 an December 31 each year.
Required:
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)
1-b. Will the bonds issue at face amount, a discount, or a premium?
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)
2-b. Will the bonds issue at face amount, a discount, or a premium?
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)
3-b. Will the bonds issue at face amount, a discount, or a premium?
Complete this question by entering your answers In the tabs below.
\table[[Req 1a,Req1b,Req2a,Req2b,Req3a,Req 3b]]
Will the bonds issue at face amount, a discount, or a premium?
Will the bonds issue at face amount, a discount, or a premium?
Req1a
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