Freedonia Township is planning to issue a 30 year bond with a face value of $15,000,000...
Freedonia Township is planning to issue a 30 year bond with a face value of $15,000,000 to construct a new sports and recreation center. The Township will make interest payments twice each year. The stated interest rate on the bond is 4.25 percent.
1. Calculate the amount of the semi-annual interest payments and report to the nearest dollar (you need not show your work). Do not include a comma or a $ sign.
2. How much will Freedonia Township realize from the bond offering if interest rates drop to 4 percent at the time of the offering? Report to the nearest dollar (you need not show your work).
3. How much will be realized if interest rates increase to 4.75 percent at the time of the offering? Report to the nearest dollar (you need not show your work).
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Freedonia Township is planning to issue a 30 year bond with a
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