Required information Exercise 9-18A Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2021, Frontier World issues $40.3 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. Exercise 9-18A Part 1 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) (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. Round your final answers to the nearest whole dollar.) $ $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price Amount 40,300,000 1,410,500 30 3.5% On January 1, 2021, Frontier World issues $40.3 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. Exercise 9-18A Part 2 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) 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. Round your final answers to the nearest whole dollar.) Amount $ 40,300,000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at O A Discount O A Premium O Face amount On January 1, 2021, Frontier World issues $40.3 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. Exercise 9-18A Part 3 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) (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. Round your final answers to the nearest whole dollar.) Bond Characteristics Face amount Amount 40,300,000 $ Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at O A Discount O A Premium O Face amount Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Total assets Total liabilities Total stockholders' equity Bahama Bay 2021 2020 $9,703 $9,622 8,082 7,546 1,621 2,076 Caribbean key 2021 2020 $ 8,903 $8,942 7,523 7,513 1,380 1,429 Sales revenue Interest expense Tax expense Net income $5,907 210 76 329 $12,879 163 350 362 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter your answer in millions. (.e., $5,500,000 should be entered as 5.5).) Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter your answer in millions.(i.e., $5,500,000 should be entered as 5.5).) Debt to Equity Ratio Bahama Bay Caribbean Key 1-b. Which company has the higher ratio? 2-a. Calculate the return on assets for Bahama Bay and Caribbean Key. (Do not round intermediate calculations. Round ratios answers to 1 decimal place. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).) Return on Assets Ratio Bahama Bay Caribbean Key