Problem
A municipal bond has a face value of $10,000. Interest of $400 is paid every 6 months. The bond has a life of 20 years. What is the effective rate of interest on this bond? Is this rate adjusted for inflation? What is the municipal government's cost of capital for this bond? Estimate the rate, considering all levels of government.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.