Prepare a table to explain the differences in cash flows and explain the difference in payback of
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Question:
Prepare a table to explain the differences in cash flows and explain the difference in payback of the loan compared to a $1 million revenue bond with a coupon rate of 5%. Both have terms of 10 years.
| Year | Loan Payment | Loan balance remaining | Bond payment | Bond balance remaining |
| 0 | | 1,000,000 | | 1,000,000 |
| 1 | | | | |
| 2 | | | | |
Expert Answer:
Difference between a loan and a revenue bond 1 As an investor Loan is an cash inflo... View the full answer
Related Book For 
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date:
