Calculate the issue price if the market rate is six percent

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Reference no: EM131881209

Problem

On January 1, 2018, Frontier World issues $39.6 million of 7% bonds, due in 10 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.

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

If the market rate is 7%, calculate the issue price.

If the market rate is 8%, calculate the issue price.

Reference no: EM131881209

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