Campus is issuing a 30 year bond with a face value of $5,000,000 and a stated annual interest rate of 6 percent. The city will make interest payments twice a year.
A. Calculate the semi-annual interest payment
B. How much ill campus receive from the bond offering if market interest rates remain unchanged at the time of offering.
C. If market interests rates decreases to 5.8 percent at the time of offering, how will bond price be affected?