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QUESTION 1 0 Autopia is planning to issue a bond with a face ( par ) value of $ 4 0 , 0 0 0

QUESTION 10
Autopia is planning to issue a bond with a face (par) value of $40,000,000 and a stated interest rate (coupon rate) of 4 percent. Interest payments are made twice annually for a 30-year term. ?**** Format all answers with commas to separate thousands, hundred thousands, millions, etc. Please format arswers as indicated below.
a. What will be the amount of each semi-annual interest payment on the bond? (Please round to the dollar (e.g.,500,000, not 500.000.00)
$
b. How much can the New University expect to receive at bond issuance, assuming that the interest rate at issuance is the same as the coupon rate? (Please round to the dollar, e.g.,3,500,000)
How much will Autopia receive if interest rates have increased to 4.5 percent at the time of issuance? (Please round to the dollar, e.g.,3,500,000
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