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The city is planning to borrow money with a 5 year, 7% of bond issue totaling $10,000,000 on principal when other municipal issue are paying
The city is planning to borrow money with a 5 year, 7% of bond issue totaling $10,000,000 on principal when other municipal issue are paying 8%
Present value of $1 8% 5 years-0.68058
Present value of annual interest payments-annuity 8% 5years-3.99271
1. The funds obtained from this bond issue would be approximately.
a. $9,515,390 b. $10,000,000 c. $10,484,610 d. $10,800,000
2. At the date of maturity, the bond will be redeemed at9
a. $9,515,390 b. $10,000,000 c.$10,484,610 d.$10,800,000
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