STATE AND LOCAL INDEBTEDNESS 75 
science to compute effective rates of interest on an annual 
basis, and this convention has been followed in making the 
computations in Table 25. The annual effective true rate 
of interest will be used in this section as indicating the cost 
of money or borrowed funds to the State of Missouri. 
TasLe 25: ComparisoN oF Coupon AND TRUE RATES oF 
INTEREST ON STATE Roap Bonps Issuep By Missouri, 
SepTEMBER 1, 1922, To June 1, 1927 
Source: Official Manual, State of Missouri, 1929-1930 
Computed by National Industrial Conference Board 
Series 
kh» 
Date Issued 
sept. 1, 1922 
dec. 1, 1922 
Nov. 1,1923 
jept. 1, 1924 
Nov. 1,:924 
Jet. 1, 1925 
Jept. 1. 1:75 
May 1 107% 
Sept. 1. 7° 
[une 1,1927 
Coupon Rate of Interest 
Semi- 
Annual 
Rate 
Annual 
Nominal | 
Rate 
Effective 
Rate 
2.25% 
2.25 
2.25 
2.00 
7.00 
2.125 
1357 
7 
1.50%, 
4.50 
1.50 
7,00 
00 
25 
25 
4.5.% 
4.55 
4.55 
4.04 
4,04 
4.30 
4.30 
in 
Il” a FE 
ve mnd 
30 
True Rate of Interest 
Annual 
Effective 
Rate 
Semi 
Annual 
Rate 
1/29, 
2.380 
2.297 
2.022 
2.099 
2.006 
2,133 
2.072 
2.101 
2.009 
5.3449, 4.391% 
4.760" | 4.817 
4.594 | 4.647 
4.044 14.085 
4.198 4.242 
4012 4.052 
$266 4.311 
4.144 4.187 
4202 4.246 
4018 1.058 
The cost of money obtained from the sale of the $60 mil- 
lion of highway bonds varied from 4.052%, to 4.817%. The 
rate of 4.0529, represents the annual cost of the net receipts 
obtained from the sale of Series F, issued under date of 
Oct. 1, 1925, and the rate of 4.8179, represents the cost of 
Series B, issued under date of Dec. 1, 1922. The cost of 
money for the first three series issued was strongly influenced 
by the maturity dates, which varied from one to nine years. 
Indeed, Series B might have been regarded as a form of 
intermediate financing, since the maximum maturity, which 
was applicable to only one fifth of the series, was only three 
years. If the first three series are excluded, it is found that 
the maximum cost of money for any of the remaining series 
is only a little more than 4.3%, and that the average! for 
the seven series is approximately 4.17%, as compared with 
an average of almost 4.62%, for the first three series. 
1 Unweighted average of effective annual rates, Series D to J inclusive.