A city government wants to raise 3 million by issuing bonds


A city government wants to raise $3 million by issuing bonds. By ballot proposition, the bond's coupon interest rate was set at 8% per year with semiannual payments. However, market interest rates have risen to a nominal 9% interest rate. If the bonds mature in 20 years, how much will the city raise from issuing $3M in bonds.

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Econometrics: A city government wants to raise 3 million by issuing bonds
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