KyleEaton

I am guessing that no one here is a finance major? UNT is not getting $20 million. It is says the deal will average $1 million per year. If Apogee takes $13.5 million today and invests it in long-term bonds that yield 4.5% per year, it covers the payments for the next 20 years. On the other hand, if UNT wants to pay off its $80 million and the cost is 4.5%. They have to pay almost $6 million per year for the next $20 years. So this covers maybe 1/6 of the total cost on an annual basis not 1/4. It is all about the time value of money.