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6. Acme Co. wishes to buy back $1.5 million worth of corporate bonds. They plan to raise the money to do so using what is
6. Acme Co. wishes to buy back $1.5 million worth of corporate bonds. They plan to raise the money to do so using what is known as a "sinking fund": they will set aside $200,000 per quarter in a dedicated account until the required amount is reached. This account earns 4.2% compounded quarterly. a) The sinking fund is an ordinary value of $1.5 million. (simple / general) annuity with a (present/ future) b) How many deposits will be required to raise enough money to buy back the bonds? [/2] [ / 4]
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