( 4 points ) Suppose Pima County issued a $100 million debt to build a new jail in 2009 . The interest rate on the debt was 6%/6 . The original debt payment schedule was to pay off the debt in 30 years with equal annual payment every year . After ten years , the interest rate is now down to 4%/6 in 2019 . The County wants to refinance its debt at this low rate , that is to say to issue a new debt at 4% to pay off what is left of the old debt and then make debt payment on the new debt . If the city can issue a new debt at 4% with a maturity of 20 years beginning in 2019 , please figure out :" a ) What is the annual level payment on the old debt ? ( 1 point ) b ) What is the amount of the new debt ? ( 1 point ) C ) What is the saving in annual payment every year for the next 20 years ? ( Assume also an equal annual payment on the new bond . ) ( 1 point ) d ) Use this case as an example , briefly comment on why citizens should care about your local government debt management . ( 1 point )