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  3. on january 1,2024, a company issues $39.9 million

On January 1,2024, a company issues $39.9 million of 7% bonds, due in 10 years,...

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Accounting

On January 1,2024, a company issues $39.9 million of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Required:
1-a. If the market rate is 6%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Will the bonds issue at face amount, a discount, or a premium?
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)
2-b. Will the bonds issue at face amount, a discount, or a premium?
3-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
3-b. Will the bonds issue at face amount, a discount, or a premium?

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