Sandavol county issues AA-rated bonds at a net interest cost of 6.85%. If annual interest payments promised on these bonds amount \$12.75 million, what was the principal amount of municipal bond?

 paraclete Posts: 1,922, Reputation: 614 Ultra Member #2 Mar 28, 2012, 11:20 PM
simple math; invert the interest formula ie; interest = principle x rate therefore principle = interest/rate

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