Required information Exercise 9-18B Calculate the issue price of bonds (LO9-7) (The following information applies...
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Required information Exercise 9-18B Calculate the issue price of bonds (LO9-7) (The following information applies to the questions displayed below) On January 1, Year 1, a company 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 9-18B Part 3 3-a. If the market rate is 9%, calculate the issue price. (FV of $1. PV of $1. FVA of S1, 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
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