On January 1, 2012, Central City issued a 20 year serial bond to finance improvements to the water distribution system A total of $ 80,000,000 face value of bonds were issued with coupon and maturity rates as follows Central City received $ 80,500,000 from the bond issue Use a spreadsheet program t...

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On January 1, 2012, Central City issued a 20-year serial bond to finance improvements to the water

Question:

On January 1, 2012, Central City issued a 20-year serial bond to finance improvements to the water system. A total of $ 80,000,000 of bonds were issued with and rates as follows:

Central City received $ 80,500,000 from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. What would the values for NIC and TIC be if the interest rate were 4.2 percent for the bonds with a maturity before 2026 and 5 percent for the bonds with a maturity of 2026 or later?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...