Calculate the issue price

Assignment Help Financial Accounting

Reference no: EM131211743

On January 1, 2015, Water World issues $24.0 million of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world’s largest water avalanche and the “tornado”— a giant outdoor vortex in which riders spin in progressively smaller and faster circles until they drop through a small tunnel at the bottom.

1. If the market rate is 4%, calculate the issue price. (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.)

2. If the market rate is 5%, calculate the issue price.

3. If the market rate is 6%, calculate the issue price.

Reference no: EM131211743

Questions Cloud

Design an algorithm for a linear array of length o(n) : Design an algorithm for a linear array of length O(n) that convolves two sequences each of length n in O(n) steps. Show that no substantially faster algorithm for such a linear array exists.

Corporation prepared its statement of cash flows : A corporation prepared its statement of cash flows for the year. The following information is taken from that statement: Net cash provided by operating activities $17,700 Net cash provided by investing activities $5,800 Net cash flow used in financin..

Briefly describe the recent changes in human populations : What is meant by population transition? Briefly describe the recent changes in human populations and the driving factors involved. Historically what other transitions have occurred?

Report net cash provided by financing activities : Net income $ 16,000 Cash dividends paid to stockholders 3,700 Cash proceeds from sale of land 3,850 Cash proceeds from bank loan 10,100 Cash payment (principal) on bank loan 2,800 Cash paid to purchase equipment 7,400. The company would report net ca..

Calculate the issue price : On January 1, 2015, Water World issues $24.0 million of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. If the market rate is 4%, calculate the issue price. If the market rate is 5%, calculate the i..

Best measure of a company profitability : Which of the following is the best measure of a company's profitability?

What valuation should be used for the gross estate : The executor sold the stock two months after the decedent’s death for $2,200,000. The bonds were sold seven months after the decedent’s death for $4,630,000. What valuation should be used for the gross estate?

Create a bid for calgary and edmonton and canada : Create a bid for Calgary, Edmonton, Canada.- Explain how the International Association for Agriculture is a good fit for Calgary.

Show that if strings over an alphabet are encoded : Show that if strings over an alphabet A with at least two letters are encoded over a one-letter alphabet (a unary encoding), then strings of length n over A require strings of length exponential in n in the unary encoding.

User Account

All Pages