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The City of Charleston Issued $3,000,000 of 8% Coupon, 30-Year

question 17

Multiple Choice

The City of Charleston issued $3,000,000 of 8% coupon, 30-year, semiannual payment, tax-exempt muni bonds 10 years ago. The bonds had 10 years of call protection, but now the bonds can be called if the city chooses to do so. The call premium would be 6% of the face amount. New 20-year, 6%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2% of the amount of bonds sold. What is the net present value of the refunding? Note that cities pay no income taxes, hence taxes are not relevant.

Understand the definition and purpose of a will and the legal requirements for its validity.

Recognize the implications of intestacy laws and how property is distributed without a will.

Identify the different types of wills and trusts and their characteristics.

Understand the roles and responsibilities of a personal representative and trustee in estate administration.

Definitions:

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

Set Up Users

The process of creating accounts or profiles for individuals to allow them access to use a system, software, or service.

Preferences

User-selected settings or choices within a software or system that customize its use or appearance.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.