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A $50 million face value bond carrying a 4.83 % coupon with 25 years until maturity is issued . The bond has a sinking fund
A $50 million face value bond carrying a 4.83 % coupon with 25 years until maturity is issued . The bond has a sinking fund requirement with semi - annual payments designed to retire the full face value upon maturity If the sinking fund is expected to earn 3.89 % compounded semi -annually , calculate the annual cost of the bond debt . What is the book value of the debt after 10 years
Question 2 A $50 million face value bond carrying a 4.83% coupon with 25 years until maturity is issued. The bond has a sinking fund requirement with semi-annual payments designed to re the full face value upon maturity. If the sinking fund is expected to earn 3.89% compounded semi-annually, calculate the annual cost of the bond debt. What is the book value of the debt after 10 yeus
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