Clearlake Optical has developed a new lens. The owners plan to issue a ($ 4,000,00030)-year bond with
Question:
Clearlake Optical has developed a new lens. The owners plan to issue a \(\$ 4,000,00030\)-year bond with a contract rate of \(5.5 \%\) paid annually to raise capital to market this new lens. This means that Clearlake will be required to pay \(5.5 \%\) interest each year for 30 years. To pay off the debt, Clearlake will also set up a sinking fund paying \(8 \%\) interest compounded annually. What size annual payment is necessary for interest and sinking fund combined?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: