In January 1981, the Municipal Assistance Corporation for the City of New York sold $100 million o 10 5/8% bonds due Jan. 1, 2008. The bonds came with two-year warrants allowing holders to purchase an additional $100 million of 10 5/8% bonds due Jan. 1, 2007 at par. The official statement shows that the warrants were unhedged.

MAC saved approximately 75 basis points in interest costs on the $ 100 million, or just about $65 per bond in January 1981 dollars. The Bond Buyer's 20-bond index of 20-year general obligation yields was just under 10% (9.9 1 % on Jan. 29, 198 1).

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