Describe statement showing the computation of nic and tic

Reference no: EM1314544

Describe Statement showing the computation of NIC and TIC

On January 1, 2006, Central City issued a 20-year serial bond to finance improvements to the water distribution system. A total of $80,000,000 face values of bonds were issued with coupon and maturity rates as follows:

December 31-Dec-10	3.00%	$5,000,000
December 31-Dec-15	3.50%	$5,000,000
December 31,2020	4.00%	$10,000,000
December 31-Dec-21	4.10%	$10,000,000
December 31-Dec-22	4.20%	$10,000,000
December 31-Dec-23	4.30%	$10,000,000
December 31-Dec-24	4.40%	$15,000,000
December 31-Dec-25	4.50%	$15,000,000

Cental City received $80,500,000 from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. What would the values for NIC and TIC be if the interest rate were 4.2 percent for the bonds with a maturity before 2020 and 5 percent for the bonds with a maturity of 2020 or later?

Reference no: EM1314544

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