True Interest Cost
= underwriter compensation + reoffering yield
Miami-Dade County s aviation revenue bonds earned a true interest cost
of 4.92 percent - half a percent lower than estimated in April 2010, which will result in savings of $5 million annually in borrowing costs over 23 years, or $115 million total.
On the consumer-credit front, the Truth in Lending Act of 1968 required the true interest cost
of a loan to be stated in simple and transparent terms.
The bond sale consisted of over $30.5 million in tax-exempt bonds and over $8.8 million in taxable bonds, with all "AAA" rated (a Moodys Investors Service rating) bonds possessing a final maturity date of 2038 and a true interest cost
of 5.08 percent.
The bid was awarded on the basis of the true interest cost
(almost 4.2 percent), which takes into account the purchase price bid and the interest rates for each maturity of bonds.
The bid reflected a true interest cost
of 4.183 percent, according to the Highway Department.
Issued in January of 1999, the POBs took advantage of the historically low interest rates and captured a 5.8 percent true interest cost
The bonds include $46.4 million at 3.6 percent all-in true interest cost
- which factors in all costs - for projects in the auxiliary system and $10.2 million at nearly 4 percent all-in true interest cost
for academic projects.