On January 1, 2024, Tropical World issues $40.2 million of 7% bonds, due in 10...
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On January 1, 2024, Tropical World issues $40.2 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.
2-a. If the market rate is 7%, calculate the issue price.(FV of $1, PV of $1, FVA of $1, and PVA of $1)
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