gilead township is issuing 30 year bond with the $50,000,000 and a stated annual

Question

gilead township is issuing 30 year bond with the $50,000,000 and a stated annual interest rate of 4 %. The city will make interest payments twice a year. Answer the following questions regarding the bond term and sale. Question 1: Calculate the semiannual interest payment ? Question 2 : If the market interest rate is 4 % when gilead sells the bond , how. Much will gilead receive gilead township is issuing 30 year bond with the $50,000,000 and a stated annual interest rate of 4 %. The city will make interest payments twice a year. Answer the following questions regarding the bond term and sale. Question 1: Calculate the semiannual interest payment ? Question 2 : If the market interest rate is 4 % when gilead sells the bond , how. Much will gilead receive gilead township is issuing 30 year bond with the $50,000,000 and a stated annual interest rate of 4 %. The city will make interest payments twice a year. Answer the following questions regarding the bond term and sale. Question 1: Calculate the semiannual interest payment ? Question 2 : If the market interest rate is 4 % when gilead sells the bond , how. Much will gilead receive

Explanation / Answer

semi annual interest payment = 4%/2 * 50,000,000 = 1,000,000

if interest is 4%, the bond will sell at par and would receive = 50,000,000

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