On january 1 2015 water world issues 240 million of 5 bonds, Ask an Expert

Accounting

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.

If the market rate is 4%, calculate the issue price. Fill out chart below

Face Value

Interest payment

Market interest rate

Periods to maturity

Issue price

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91968033

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