Question
A city has financed a local project with a $600 000 bond issue with a coupon rate of 6% compounded semi-annually. The bonds are redeeable
A city has financed a local project with a $600 000 bond issue with a coupon rate of 6% compounded semi-annually. The bonds are redeeable in 13 years. At the same time, a accumulate the full $600000 when the bonds mature in 13 years.
a) find the periodic cost of the debt.
b) What is the book value of the debt after 7 years?
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Front Office Operations And Auditing Workbook
Authors: Patrick J. Moreo, Gail Sammons, Jeff Beck
2nd Edition
0130324930, 978-0130324931
