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A municipality wants to sell 30 year bonds to pay for a new WWTP. Investors want a market rate of return on their money of 3.5% or higher for the tax free bonds. The City needs to raise $32.5m today. What would be the semi-annual cash payments that the City will have to make to the investors to retire the bonds and what will be the ultimate cost to the City of the bonds.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91236840

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