The fiscal problem in Missouri

Bibliographic data

Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter II. State and local indebtedness

Collection:: Economics Books

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 mar- keted at a rate that would preclude the possibility of a con- siderable 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 semi- annually, 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 func- tion of the semi-annual coupon rate, the net receipts, and the maturity dates. The nominal annual true rate is ob- tained 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.

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