Maryville is considering the issuance of bonds to fund a capital project.For the following legally feasible bond issue alternatives,discuss the desirability of each alternative from the viewpoint of (1)the official in charge of administering capital projects funds,and (2)taxpayers responsible for repaying the bond issue.
a)$5,000,000 face value,10-year special assessment bonds can be sold at 98 with semiannual interest at the nominal annual rate of 6 percent.The discount would be borne by a debt service fund.
b)Same as item a above,except the discount would be borne by the capital projects fund.
c)The same bond issue can be sold at 103 with semiannual interest at the nominal rate of 9 percent; the premium would be transferred to the debt service fund.
d)Same as item c above,except the premium would be retained by the capital projects fund.

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The Answer of Maryville is considering the issuance of bonds to fund a capital project.For the following legally feasible bond issue alternatives,discuss the desirability of each alternative from the viewpoint of (1)the official in charge of administering capital projects funds,and (2)taxpayers responsible for repaying the bond issue.
a)$5,000,000 face value,10-year special assessment bonds can be sold at 98 with semiannual interest at the nominal annual rate of 6 percent.The discount would be borne by a debt service fund.
b)Same as item a above,except the discount would be borne by the capital projects fund.
c)The same bond issue can be sold at 103 with semiannual interest at the nominal rate of 9 percent; the premium would be transferred to the debt service fund.
d)Same as item c above,except the premium would be retained by the capital projects fund.

Maryville Is Considering the Issuance of Bonds to Fund a Capital