Question the city of chicago currently pays 5800000 in debt, Ask an Expert

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Question: The City of Chicago currently pays $5,800,000 in debt service annually with annual revenues totally $43,900,000. If the City's benchmark debt ratio is 15%, can the City issue more debt? Why? If so, of much additional debt can the City carry? Assume an annual interest rate of 5% and a 20-year maturity for the debt.

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