Part 3: Open-ended question(s) Answer one of the following two questions using terminology and calculations discussed...

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Part 3: Open-ended question(s) Answer one of the following two questions using terminology and calculations discussed in class. Please make sure to answer the questions using financial terms and estimates that we did throughout the semester. Answers should be between one and two pages. Online materials that were not included in class can be used but make sure to reference any additional sources used in footnotes! Calculations though should be done in Excel (use Part 3 in the Excel file for this) and not use online calculators (the sheet in the Excel file will be evidence that the calculations were conducted by you and not online). Question 1: A sport franchise is relocating to a new city (the city did not have a franchise beforehand) and to fund the $2,000,000,000 stadium, the franchise struck a deal with the city that the franchise will pay for 45% of the venue and the city will pay for the remaining 55% to assure that it is listed as a public venue. To finance the city's share of the expense, the city proposed raising funds by issuing bonds with a 5% fixed interest rate, a fixed 2.8% coupon rate, bi-annual payments, and a 20-year maturity period. The city also instated a 0.05% sales tax on all sales in the city to pay for the bonds annual expense. Discuss this deal from the perspective of the city and people who could potentially purchase the bonds, consider how much the city will have to pay over the 20 year period, the value of the bonds at the end of the period (remember that the city needs to repay the original amount at the end), and if you think it is a good deal if it means the city gets a franchise (consider economic impacts, externalities, and other factors). Part 3: Open-ended question(s) Answer one of the following two questions using terminology and calculations discussed in class. Please make sure to answer the questions using financial terms and estimates that we did throughout the semester. Answers should be between one and two pages. Online materials that were not included in class can be used but make sure to reference any additional sources used in footnotes! Calculations though should be done in Excel (use Part 3 in the Excel file for this) and not use online calculators (the sheet in the Excel file will be evidence that the calculations were conducted by you and not online). Question 1: A sport franchise is relocating to a new city (the city did not have a franchise beforehand) and to fund the $2,000,000,000 stadium, the franchise struck a deal with the city that the franchise will pay for 45% of the venue and the city will pay for the remaining 55% to assure that it is listed as a public venue. To finance the city's share of the expense, the city proposed raising funds by issuing bonds with a 5% fixed interest rate, a fixed 2.8% coupon rate, bi-annual payments, and a 20-year maturity period. The city also instated a 0.05% sales tax on all sales in the city to pay for the bonds annual expense. Discuss this deal from the perspective of the city and people who could potentially purchase the bonds, consider how much the city will have to pay over the 20 year period, the value of the bonds at the end of the period (remember that the city needs to repay the original amount at the end), and if you think it is a good deal if it means the city gets a franchise (consider economic impacts, externalities, and other factors).