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A bond has the following features: Coupon rate of interest: 5 percent Principal: $1,000 Term to maturity:10 years c. If the bond has a sinking

A bond has the following features:

Coupon rate of interest: 5 percent

Principal: $1,000

Term to maturity:10 years

c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for ten years if the funds earn 8 percent annually and there is $100 million outstanding?

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