The colorado educational and cultural facilities authority

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Reference no: EM131361274

The Colorado Educational and Cultural Facilities Authority (CECFA) is issuing a 30 year bond with a face value of $5,000,000 and a stated annual interest rate of 6 percent. CECFA will make interest payments twice a year.

Calculate the semi-annual interest payment.

Calculate how much CECFA will receive from the bond offering (how much will buyers be willing to pay for the bonds) under the following conditions:

Market interest rates decreases to 5.5% at the time of the offering.

Reference no: EM131361274

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