Central city received 80500000 dollar from the bond issue., Ask an Expert

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problem: On January 1, 2006, Central City issued a twenty year serial bond to finance improvements to the water distribution system. A total of $80,000,000 face values of bonds were issued with coupon and maturity rates as follows:

December 31-Dec-10	3.00%	$5,000,000
December 31-Dec-15	3.50%	$5,000,000
December 31,2020	4.00%	$10,000,000
December 31-Dec-21	4.10%	$10,000,000
December 31-Dec-22	4.20%	$10,000,000
December 31-Dec-23	4.30%	$10,000,000
December 31-Dec-24	4.40%	$15,000,000
December 31-Dec-25	4.50%	$15,000,000

Central City received 80,500,000 dollar from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. find out the values for NIC and TIC be if the interest rate were 4.2% for the bonds with a maturity before 2020 & 5% for the bonds with a maturity of 2020 or later?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M918820

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