Sepia Inc. issued bonds for $325,000 that were redeemable in 9 years. They established a sinking...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sepia Inc. issued bonds for $325,000 that were redeemable in 9 years. They established a sinking fund that was earning 4.87% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 12. Round to the nearest cent Questions Sepia Inc. issued bonds for $325,000 that were redeemable in 9 years. They established a sinking fund that was earning 4.87% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 12. Round to the nearest cent Questions
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Read the article Job Design, Job Characteristics, and Job Crafting and write a paper about it
-
The trial balance for Pioneer Advertising Agency is shown in Illustration 3-3, p. 100. In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1....
-
On March 12, 19X5, Brown & Brown, CPAs, completed the audit of the financial statements of Modern Museum, Inc., for the year ended December 31, 19X4. Modern Museum presents comparative financial...
-
What are the major uses of cash for a company?
-
Montevallo Corporation leased equipment from Folio Company. The lease term is 10 years, requires payments of $25,000 at the end of each year, and contains a bargain purchase option. At the end of the...
-
Which company liquidity ratios are better among the two companies? ( Find out Current ratio, Quick Ratio and Cash ratio for both companies. If you would like to associate with any one of the...
-
A General Motors bond carries a coupon rate of 9.52 %, has 28 years until maturity, and sells at a yield to maturity of 6.15%. What price does the bond sell? (Assume annual interest payments) Numeric...
-
1. The Ryobi Co. has no units in beginning work in process inventory. During the month, it had started 7,000 units into production. At the end of the month, 500 units remained still process which is...
-
Write a Python code for the payroll system of Employees in a company as follows: The program should have 4 classes: 1- Employee class: 5 points Use init () for initializing the attributes of the...
-
If you were called upon to advise the GAP INC. CEO of the next steps to take, what strategies would you advise? Remember to provide support and a thorough evaluation for your recommendations that...
-
In addition to the normal obstacles of starting a business, what other barriers do Colgate entrepreneur's face?
-
ABC stock closed yesterday at a price of $48.88 a share. The price today was down by $4.49. ABC pays a constant annual dividend of $0.32. What is the current dividend yield today?
-
1) Suppose that two fair six-sided dice are tossed simultaneously, and the sum of the two faces facing upward is recorded. Determine what the theoretical probability distribution is using the...
-
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cashflows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit...
-
Variable and fixed cost analysis; high-low method} Celsius Company manufactures a product that requires the use of a considerable amount of natural gas to heat it to a desired temperature. The...
-
On January 2, 20x6, the Healey Company made several long-term investments in the voting stock of various companies. It purchased 10,000 shares of Zima at $4.00 a share, 15,000 shares of Kane at $6.00...
-
Bon Company owns 40 percent of the voting stock of Macree Company. The investment account for this company on Bons balance sheet had a balance of $300,000 on January 1, 20xx. During 20xx, the Macree...
Study smarter with the SolutionInn App