Softball teams need to make each year to repay the bonds

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Reference no: EM131883134

State U wants to raise $1 million for a new baseball/softball complex using a Private Activity Bond. They know there are 2,500 people that would be willing to pay a moderate amount if they could get a return of 6% a year over a five year period.

A. What would the dollar amount of the initial offering for each bond need to be? Please show work.

B. What would be the total amount State U would need to pay out at the end of the five-year period? Please show work.

C. How much profit would the baseball/softball teams need to make each year to repay the bonds? Please show work.

Reference no: EM131883134

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