autopia is planning to issue a bond with a face par value of usd40 000
Autopia is planning to issue a bond with a face (par) value of $40,000,000 and a stated interest rate (coupon rate) of 4 percent. Interest
payments are made twice annually for a 30 year term. **Format all answers with commas to separate thousands, hundred thousands,
millions, etc. Please format answers as indicated below.
What will be the amount of each semi-annual interest payment on the bond? Please round to two decimal places (e.g., 500,000.00)
How much can the New University expect to receive at bond issuance, assuming that the interest rate at issuance is the same as the
coupon rate? Please round to two decimal places (e.g., 3,500,000.00)
How much will Autopia receive if interest rates have increased to 4.5 percent at the time of issuance? Please round to two decimal places
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