Fourthedition Township is issuing a 30-year bond with a face value of $ 50,000,000 and a stated
Question:
1. Calculate the semiannual interest payment.
2. Calculate how much Fourthedition Township 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 increased to 4.2 percent at the time of the offering.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
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