Under these assumptions, to be able to borrow $120,000,000, theTreasury has to issue a bond with a face value of _____ dollars andthe city government has to issue a bond with a face value of____ dollars.
The after-tax rate of return from the Treasury bond for theinvestors like you and me will be ___ percent and the after-taxrate of return from the municipal bond will be ____ percent.
After one year when the bonds mature, the Treasury will pay ____dollars in interest to the lenders. The city government willpay ____ dollars in interest to the lenders.
Under these assumptions, to be able to borrow $120,000,000, the Treasury has to issue a bond with a face value of _____
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