On January 1, 2012, the City of Raleigh issued a 20-year bond to finance improvements to the highway system. A total of $100,000,000 in bonds with coupon and maturity rates as follows:
|
December 31, 2021
|
3.5%
|
$10,000,000
|
|
December 31, 2026
|
4.0%
|
$10,000,000
|
|
December 31, 2027
|
4.0%
|
$10,000,000
|
|
December 31, 2028
|
4.0%
|
$15,000,000
|
|
December 31, 2029
|
4.0%
|
$15,000,000
|
|
December 31, 2030
|
4.5%
|
$20,000,000
|
|
December 31, 2031
|
4.5%
|
$20,000,000
|
Raleigh received $100,500,000 from the bond issue. What is the net interest cost for the bond issue?