A city advertised for bids for purchase of $4mil principal amount of Waste Water revenue bonds which will bedelivered on June 1 2022 and interest will be paid on June 1s on following years. Bonds mature as follows

6.1.27 100k

6.1.28 100k

6.1.29 150k

6.1.30 150k

6.1.31 300k

6.1.32 300k

6.1.33 350k

6.1.34 450k

6.1.35 500k

6.1.36 800k

6.1.37 800k

the city received three bids

From One:

city recieves $3.9 Mil

Interest rates for the serial bonds with maturities:

2027 through 2030, 5.55 percent

2031 through 2037, 6.00 percent

Compute net interest cost and true interest cost