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1. A city advertised for bids for the purchase of $2 million principal amount of Sewage Works Revenue Bonds. Bonds will be delivered on April

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1. A city advertised for bids for the purchase of $2 million principal amount of Sewage Works Revenue Bonds. Bonds will be delivered on April 1, 2111?, and the interest will he paid on April 15'1 of the following years. The bonds mature as follows: sit-rill 21126 Ali-ill 21122 sit-rill 21123 sit-rill 21129 sit-rill 211311 sit-rill 21131 Airill 21132 The Iti'ityF received two competing bids for the Sewage Works Revenue Bonds. The two offers are as follows: From Five Point Securities: I The IICityI receives $2.5 million dollars o The Interest Rates are as follows: to 21122 through 21l31l, 5.51] percent or 21131 through 21132, 6.111} percent From Wellntgton-Nelson: - The City Receives $2 million dollars - The Interest Rates are as follows: :5 21122 through 21l24, 4.35 percent to 21125 through 21131}. 5.25 percent :5 21131 irough 2032, 15.51] percent For each hid, compute the net interest cost {N113} and the true interest cost {TIC}. Which bid is more advantageous for the city

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