Homework SourseGilead Township is issuing a 30year bond with a face value o
Gilead Township is issuing a 30year bond with a face value of $ 50,000,000 and a states annual interest rate of 4 percent. the city will make interest payments twice a year. Answer the following question regarding the bond terms and sale.:
# . The par value of the bond is ?
Gilead Township is issuing a 30year bond with a face value of $ 50,000,000 and a states annual interest rate of 4 percent. the city will make interest payments twice a year. Answer the following question regarding the bond terms and sale.:
# . The par value of the bond is ?
Gilead Township is issuing a 30year bond with a face value of $ 50,000,000 and a states annual interest rate of 4 percent. the city will make interest payments twice a year. Answer the following question regarding the bond terms and sale.:
# . The par value of the bond is ?
Solution
The face value of the Bond is only the par value of Bond.
In the given question the par value of Bond is $ 50,000,000
Semi-Annual Interest = $50,000,000 * 4% *1/2 = $ 1,000,000
