Order the answer to: The Ester Municipal Water Utility issued 20-year bonds in the

Custom Essays business-economics Order the answer to: The Ester Municipal Water Utility issued 20-year bonds in the

business-economics

Order the answer to: The Ester Municipal Water Utility issued 20-year bonds in the

Question The Ester Municipal Water Utility issued 20-year bonds in the amount of $53 million for several high-priority flood control improvement projects. The bonds carried a 5.38% rate with the payable annually. The U.S. economy was in a recession at that time, so as part of the federal stimulus program, the Utility gets a 35% reimbursement on the it pays. (a) What is the effective rate that the Utility is paying on the bonds? (b) What is the total dollar amount the Utility will save in dividends over the life of the bonds? (c) What is the future worth in year 20 of the savings, if the interest rate is 6% per year?
Subject business-economics
Ready to try a high quality writing service? Get a discount here