Orlando advertised for bids for the purchase of $3 million principal amount of Waste Water Revenue Bonds. Bonds will be delivered on January 1st, 2021, and the interest will be paid on December 31st of the following years. The bonds mature as follows: Maturity Date Amount ($) 12/31/2026 100,000 12/31/2027 100,000 12/31/2028 100,000 12/31/2029 100,000 12/31/2030 200,000 12/31/2031 200,000 12/31/2032 250,000 12/31/2033 250,000 12/31/2034 250,000 12/31/2025 700,000 12/31/2036 750,000 The City received three competing bids for the Waste Water Revenue Bonds. The three offers are as follows: From Rogue Securities: The City receives $3.5 million dollars The Interest Rates for the serial bonds with maturities: o 2026 through 2031, 4.2 percent o 2032 through 2036, 6.4 percent From Johnson-Miller: The City Receives $3 million dollars The Interest Rates for the serial bonds with maturities: o 2026 through 2028, 4.2 percent o 2029 through 2033, 5.0 percent o 2034 through 2036, 7.0 percent From Shostak Corp: The City receives $2.95 million dollars The Interest rates for the serial bonds with maturities: o 2026 to 2033, 4.4 percent o 2034 to 2036, 6.25 percent For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city?in word

1. Orlando advertised for bids for the purchase of S3 million principal amount of Waste Water Revenue Bonds. Bonds will be delivered on January Ist. 2021, and the interest will be paid on December 31% of the following years. The bonds mature as follows: Maturity Amount 12/31/2026 | 100.000 12/31/2027100 000 12/31/2028 100.000 1291 2029 HIKI KIO 12/31/2030 200.000 12/31/2031 2000 12/31/2032 250.000 12/31/2033 250,000 12/01/2034 250 000 12/31/2025700.000 12/31/20136 750 00 The City received three competing bids for the Waste Water Revenue Bonds. The three ofies are as follows: From Rogue Securities The City R S S million dollars The Interest Rates for the stars and with maturities 0 2126 through 20131.42 percent 20132 through 116.64 percent From Johnson Miller The City Receives S3 million dollars The Interest Rates for the serial bonds with m 0 20126 through 20128.4.2 percent 0 2029 through 2033.5.0 percent 0 2034 through 2036.7.0 percent urities From Shostak Corp The City receives $2.95 million dollars The Interest rates for the serial bonds with maturities: 2026 to 2003, 4.4 percent 2014 to 2016, 6.25 percent For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city? 1. Orlando advertised for bids for the purchase of S3 million principal amount of Waste Water Revenue Bonds. Bonds will be delivered on January Ist. 2021, and the interest will be paid on December 31% of the following years. The bonds mature as follows: Maturity Amount 12/31/2026 | 100.000 12/31/2027100 000 12/31/2028 100.000 1291 2029 HIKI KIO 12/31/2030 200.000 12/31/2031 2000 12/31/2032 250.000 12/31/2033 250,000 12/01/2034 250 000 12/31/2025700.000 12/31/20136 750 00 The City received three competing bids for the Waste Water Revenue Bonds. The three ofies are as follows: From Rogue Securities The City R S S million dollars The Interest Rates for the stars and with maturities 0 2126 through 20131.42 percent 20132 through 116.64 percent From Johnson Miller The City Receives S3 million dollars The Interest Rates for the serial bonds with m 0 20126 through 20128.4.2 percent 0 2029 through 2033.5.0 percent 0 2034 through 2036.7.0 percent urities From Shostak Corp The City receives $2.95 million dollars The Interest rates for the serial bonds with maturities: 2026 to 2003, 4.4 percent 2014 to 2016, 6.25 percent For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city