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

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Question

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 and 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 af $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 questlon by entering your answers in the tabs below.
Req 1 a
Req 2b
Req 3a
Req 3b
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. Enter your answers in dollars not in millions (1.e., $5.5 million should be entered as 5,500,000. Round your final answers to the nearest whole dollar.)
\table[[Bond Characteristics,Amount],[Face amount,$,39,800,000
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