Calculate the issue price

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Reference no: EM133497158

Question: On January 1, 2021, Frontier World issues $39.2 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.

Required

If the market rate is 7% calculate the issue price. FV of $1, PV OF $1, AND PVA OF $1. Use appropriate factors 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.

Reference no: EM133497158

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