On january 1 2012 water world issues 26 million of 8 bonds, Ask an Expert

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On January 1, 2012, Water World issues $26 million of 8% bonds, due in 9 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.if the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9984131

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