The Town of Hill Valley is issuing a 30-year bond with a face value of $50,000,000 and

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The Town of Hill Valley is issuing a 30-year bond with a face value of $50,000,000 and a stated annual interest rate of 4 percent. The town will make interest payments twice a year. 

1. Calculate the semiannual interest payment.
2. Calculate how much Hill Valley will receive from the bond offering under the following conditions:
a. Market interest rates remain unchanged at the time of the offering.
b. Market interest rates increase to 4.2 percent at the time of the offering.

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Related Book For  book-img-for-question

Financial Management for Public, Health and Not-for-Profit Organizations

ISBN: 978-1506326849

5th edition

Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell

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