FINANCING THE CAPITAL REQUIREMENTS 273 
TaBLe 84: ANNUAL AMOUNT oF Taxes REQUIRED FoR 
Dest Service oN $40 MirLLion oF TWENTY-YEAR 
4149, Serial Bonps, IsSUED so THAT THE ANNUAL 
ReqQuireMENTS FoR DEBT SERVICE WILL RE- 
main UntrorM THROUGHOUT THE PERIOD 
Computed by National Industrial Conference Board 
‘ear 
Bonds Out- 
standing at 
Beginning of 
Year 
$40,000,000 
38,724,954 
37,392,530 
36,000,149 
34,545,111 
33,024,596 
31,435,658 
29,775,216 
18,040,054 
26,226,810 
24,331,970 
12,351,862 
20,282,651 
18,120,325 
15,860,695 
13,499,380 
11,031,806 
8.453,192 
5.758,539 
1942 627 
Bonds Redeem- 
able at End of 
Year 
$1,275,046 
332,424 
1392.,381 
"455,038 
520,515 
'588,938 
660,442 
735,162 
813,244 
894.840 
1,980,108 
1.069.211 
1.162.326 
1,259,630 
2,361,315 
1.467.574 
1,578,614 
2,694,653 
2,815,912 
1.942.627 
Annual Equal 
Amount of 
Taxes Set 
Aside for 
Debt Service 
$3,075,046 
3,075,046 
3,075,046 
1,075,046 
075,046 
075,046 
075,046 
~075,046 
1075,046 
075,046 
075,046 
075,046 
075,046 
073,046 
075,046 
075,046 
3,075.046 
3,075,046 
3,075,046 
3.075.046 
Bond Interest 
Due at End of 
Year 
$1,800,000 
742,623 
1,682,664 
620,007 
554,530 
486,107 
1,414,605 
1,339,885 
1.261.802 
1,180,206 
094,939 
7005,834 
912,719 
815.415 
713.731 
507,472 
196,431 
380,394 
259,134 
132.418 
Amount Avail- 
able for Re~ 
demption of 
Bonds 
$1,275,046 
1,332,423 
1,392,382 
1,455,039 
1,520,516 
£588,939 
660,441 
735.161 
813.244 
1894,840 
980,107 
1,069,212 
2,162,327 
2,259,631 
1,361,315 
2,467,574 
1578,615 
2,694,652 
2.815.912 
2942628 
assumption that the number of years indicated will represent 
the extremes. In compiling these tables, no account has 
been taken of normal growth in the ability of the state to 
meet the expenditures required for debt service. A 44% 
interest rate has been assumed, although on the basis of 
recent experience the average rate at which such bonds can 
be sold would probably be nearer 434%. To the extent that 
the average rate would be less than 4149, the annual 
amounts required for interest would be reduced to some 
extent. On the other hand, if they are issued so that on the 
average they bear a coupon rate of 415%, the bonds would 
doubtless sell at a premium, thus making a larger amount 
available at the outset. Refinements of this sort need not be 
considered in detail, but it should also be noted that Tables 
84 and 85 are based on the assumption that the entire amount