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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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