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#4 please On October 1, 2015 New York City issued a 30-year bond with a face (or par) value of $100,000,000 and a stated annual
#4 please
On October 1, 2015 New York City issued a 30-year bond with a face (or par) value of $100,000,000 and a stated annual interest rate of 6 percent. Under the terms of the bond offering, the city must make interest payments twice each year until the final maturity date of the bond on October 1, 2045. (1) What is the semi-annual payment on this bond? (2) How much does the city receive for this bond on the day of issue? (3) If the market interest rises to 6.1 percent on the day of issue, how much does the city receive for this bond on the day of issue? (4) As of October 1, 2025, with exactly 20 years remaining on the life of the bond, interest rates had fallen to 4.6 percent. What was the value of the bond on October 1, 2025? (5) If this bond had been issued as a zero-coupon bond instead of as a coupon bond, how much would the city have received for the bond on the day of issue (assume a market interest rate of 6 percent)
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