Interest rate was paid on the construction bonds


Problem:

The Golden Gate Bridge in San Francisco was financed with construction bonds sold for $36 million in 1931. These were 40-year bonds, and the $36 million principal plus almost $40 million in interest were repaid in total in 1971. If interest was repaid as a lump sum,

Required:

Question: What interest rate was paid on the construction bonds? Please explain comprehensively and provide step by step solution.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Interest rate was paid on the construction bonds
Reference No:- TGS0877622

Expected delivery within 24 Hours