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Houston-area schools consider $1.4B construction program

According to the Texas Association of School Boards, boards typically sell capital construction bonds as municipal bonds at the lowest interest rate offered, usually to a big institutional investor. The rate is dependent on the school district’s bond rating. The better the district’s rating, the lower the interest rate will be. Over time, the school board pays the principal and interest back with a debt service tax. The time for the payout is limited to 40 years.

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