A major urban center is planning to issue a $100 million, 20-year, semiannual-interest-paying municipal bond for...
A major urban center is planning to issue a $100 million, 20-year, semiannual-interest-paying municipal bond for the construction of a stadium. The interest rate is 5.875%, based on the economic and financial conditions of the city and city government. The design and issuance costs are estimated to be $10 million and 1%, respectively.
How much will the city still owe on this bond at the end of each year? (please screenshot excel spreadsheet of steps)
Homework Answers
| interest cost p.a. | $11.75 million | |||||
| design cost | $10million | |||||
| issuance cost | $1million | |||||
| at the time of issue total cost is $11million | ||||||
| at the end of each year from 1st till 20th year interest payment is $11.75 million | ||||||
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A major urban center is planning to issue a $100 million,
20-year, semiannual-interest-paying municipal bond for...
A major urban center is planning to issue a $100 million, 20-year, semiannual-interest-paying municipal bond for...
A major urban center is planning to issue a $100 million, 20-year, semiannual-interest-paying municipal bond for the construction of a stadium. The interest rate is 5.875%, based on the economic and financial conditions of the city and city government. The design and issuance costs are estimated to be $10 million and 1%, respectively. What is the total interest paid if the city decides to adopt a level debt service structure? (please screenshot excel)
Alenza, Inc. plans to issue a 10-year semiannual bond with a face value of $395,000 paying...
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