CHICAGO — Illinois paid lower yield penalties on its first bond sale after lawmakers passed legislation to restructure a pension system burdened with $100.5 billion of unfunded liabilities.

Bank of America Merrill Lynch submitted the winning bid Thursday with a true interest cost of 5.397% on the state's $350 million competitive taxable general obligation bond sale. The state received a total of eight bids, in line with the typical seven to 10 bids it receives on competitive transactions.

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