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A city government wants to raise $3 Million by issuing bonds. By ballot proposition, the bond coupon interest rate was set at 8% per year
A city government wants to raise $3 Million by issuing bonds. By ballot proposition, the bond coupon interest rate was set at 8% per year with semiannual payments, however market interest rates have risen to nominal 9% interest rate. If the bonds mature in 20 years, how much will the city raise from issuing $3 Million in Bonds
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