True Interest Cost or “TIC” means with respect to Offer Date Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount
True Interest Cost. (TIC) means the annual discount rate that, when used to discount all debt service payments on the issue to the date of initial delivery of the issue, using a compounding interval equal to the interest payment periods for the issue, results in the aggregate present value of such debt service payments being equal to the original purchase price (including accrued interest) of the issue.
True Interest Cost means the rate necessary to discount the cumulative amounts payable on the respective Payment Dates in respect of Senior Debt Service to the original purchase price of the Senior Obligations (taking into account discounts, premiums and transaction costs) on the basis of semi-annual compounding of interest.
Examples of True Interest Cost in a sentence
The True Interest Cost serves as the basis for awarding bonds to Winning Bidders.
When a competitive bidding process is deemed the most advantageous method of sale for the District, award will be based upon, among other factors, the lowest offered True Interest Cost (“TIC”).
All debt issues should be sold through a competitive bidding process based upon the lowest offered True Interest Cost (TIC), unless Council deems a negotiated sale the most advantageous to the Village.
Bids will be awarded on a True Interest Cost (TIC) basis, providing other bidding requirements are satisfied.
The SRF loan interest rate is typically calculated by taking half of the True Interest Cost (TIC) of the most recent State of California General Obligation Bonds sale.
More Definitions of True Interest Cost
True Interest Cost means the rate, expressed as a percentage, that discounts all of the Issue’s future Principal and interest payments to amounts, when summed, equal the Principal plus the Net Issue Premium or Discount.
True Interest Cost means the bond yield according to issue price without a reduction for related administrative costs, and is the same figure as the arbitrage yield calculation described in the United States Tax Reform Act of 1986.
True Interest Cost means the rate used to discount the amounts payable on the respective principal and interest maturity dates which yields a result equal to the purchase price received for bonds; and
True Interest Cost means the index as of September 30th of the previous Fiscal Year provided by the Bond Buyer’s 25 Bond Revenue Index.
True Interest Cost or “TIC” means with respect to Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount (i) the payments of principal and interest to holders of Tested Bonds to maturity to (ii) the purchase price paid by buy-and-hold investors in the Tested Bonds. Thus, TIC on Tested Bonds is determined without regard to costs of issuing the Tested Bonds, funded interest, any amounts deposited to a debt service reserve account, or amounts paid for bond insurance or other credit enhancement with respect to the Tested Bonds.
True Interest Cost means that yield, which if used to compute the present worth as of the delivery date of the refunding bonds of all payments of principal and interest to be made on the refunding bonds from their delivery date to their respective maturity dates (as specified in the maturity schedule and without regard to the possible optional prior redemption of the refunding bonds), using the interest rate specified in the bid or purchase contract produces an amount equal to the principal amount of the refunding bonds, plus any premium or minus any discount bid or stated in the purchase contract. Such calculation shall be based on a 360 day year consisting of 12, 30-day months and a semi-annual compounding interval.
True Interest Cost means the rate assuming semi-annual interest payments and a 30/360 day count convention, necessary to discount the amounts payable on the respective principal and interest payments, assuming the bonds are not redeemed prior to maturity, to the purchase price received for the bonds. The purchase price shall be calculated as par amount of the bonds at Closing minus any original issue discount and plus any original issue premium.