Charleston independent school district needs to raise 200


Charleston Independent School District needs to raise $200 million to refurbish the existing schools and build new ones. The bonds will pay interest semiannually at a rate of 7% per year, and they will mature in 30 years. Brokerage fees associated with the sale of the bonds will be $1 million. If the interest rate in the marketplace rises to 8% per year, compounded semiannually, before the bonds are issued, what will the face value of the bonds have to be for the school district to net $200 million ?

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Charleston independent school district needs to raise 200
Reference No:- TGS0585130

Expected delivery within 24 Hours