74 THE FISCAL PROBLEM IN MISSOURI

premium receipts for the ten series therefore amounted to
$296,041. In other words, Missouri received $60,296,041 for
the ten series, not counting the accumulated interest from
the date borne by the bonds until the date of sale. This
indicates that those responsible for determining the coupon
rate of interest were successful in appraising the market
situation. It was desirable that the bonds should be marketed
 at a rate that would preclude the possibility of a considerable
 net discount for the ten series as a unit, and this
result was achieved.
The maturity dates on the several series were adjusted in
such a manner as to correlate with the estimated receipts for
redemption purposes. The limitations contained in the
constitutional amendment authorizing the indebtedness
were, ofe course, observed. Table 24 indicates that the
maturity dates for the ten series varied between Dec. 1,
1923, and June 1, 1947, and that the maximum amount
maturing on any one date is $3 million, as compared with a
minimum of $500,000. It would probably be too much to
expect that the entire issue could be redeemed without any
refinancing, for this could occur only if the future financial
situation had been perfectly appraised by those responsible
for the determination of the maturity dates. Nevertheless,
it is clear that every attempt was made to minimize the
burden of the redemption payments required on any given
date.
Table 25 has been derived from the information given in
Table 24. Since interest on the entire series is payable semiannually,
 the semi-annual coupon rate and the semi-annual
true rate are shown. The semi-annual true rate represents
the interest cost for one half year expressed as a percentage
of the receipts obtained! from the sale of bonds in a given
series and based on the assumption that interest is normally
payable semi-annually. In other words, this rate is a function
 of the semi-annual coupon rate, the net receipts, and
the maturity dates. The nominal annual true rate is obtained
 by multiplying the semi-annual rate by two.
The annual effective coupon and true rates are slightly
higher than the nominal rates. Itis a convention in actuarial
1 Exclusive of accumulated interest between date of issue and date sold.