6-16. The town of Hill Valley is issuing a 30-year bond with a face value of $50 million and a stated annual interest rate of 4 percent. The town will make interest payments twice a year. Calculate the semiannual interest payment. Calculate how much Hill Valley will receive from the bond offering under the following conditions: Market interest rates remain unchanged at the time of the offering. Market interest rates increase to 4.2 percent at the time of the offering

Problem 6-16 Input 5 Par value of Bond - Coupon Rate 3 Interest Payments per year Rate per coupon = coupon rate / # payments 10 Years to maturity 11 Periods to maturity = years * # payments 12 Market Rate at time of offering 13 Market Rate per coupon = coupon rate / # payments 0.00% 0.00% $ 15 1. Coupon = par value * coupon rate / # payment =nper 16 =pv(rate,nper,pmt,fv, type) 17 2-a Bond value at coupon rate 18 2-b Bond value at market rate 19 20