The town of Hill Valley is issuing a 30 year bond with a face value of $50,000,000 and a stated annual interest rate of 4 percent. The town will make interest payments twice a year.

1. Calculated the semiannual interest payment.

2. Calculate how much Hill Valley will receive from the bond offering under the following conditions:

a. Market interest rates remain unchanged at the time of the offering.

b. Market interest rates increase to 4.2 percent at the time of the offering.