The interest rate is set by the bond market at the time the bonds are issued. Since the City carries an excellent bond and credit rating, the interest rate is likely to be among the lowest available for municipal bonds. Rosenberg would issue bonds based on a 20-year maturity schedule, with nearly half of the principal expected to be paid off in the first 10 years. This repayment schedule would minimize the interest cost that must be repaid. Additionally, the bonds would be callable in ten years or less and the City would have the option to pay off the bonds early at that time.