Question
Metropolitan Nashville and Davidson County issues $25 million of municipal revenue bonds to finance a new domed stadium for the Tennessee Titans football team. The
Metropolitan Nashville and Davidson County issues $25 million of municipal revenue bonds to finance a new domed stadium for the Tennessee Titans football team. The bonds have a face value of $10,000 each, are somewhat risky, and have a maturity of 20 years. Enterprise Bank of Nashville purchases one of the bonds using the $5,000 received from Sarah Levien and Ted Hawkins, who each purchased a 6?month certificate of deposit from the bank. Explain the intermediation services provided by Enterprise Bank in this transaction. Illustrate with T?accounts.
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