Calculate the net interest cost for the bond issue

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Reference no: EM131959203

On January 1, 2012, the City of Raleigh issued a 20-year bond to finance improvements to the highway system. A total of $100,000,000 in bonds with coupon and maturity rates as follows:

December 31, 2021	3.5%	$10,000,000
December 31, 2026	4.0%	$10,000,000
December 31, 2027	4.0%	$10,000,000
December 31, 2028	4.0%	$15,000,000
December 31, 2029	4.0%	$15,000,000
December 31, 2030	4.5%	$20,000,000
December 31, 2031	4.5%	$20,000,000

Raleigh received $100,500,000 from the bond issue. What is the net interest cost for the bond issue?

Reference no: EM131959203

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