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A city borrows $100.000, paying interest at j2 = 7%. They make semi-annual deposits in a sinking fund to repay the loan upon maturity. The
A city borrows $100.000, paying interest at j2 = 7%. They make semi-annual deposits in a sinking fund to repay the loan upon maturity. The city decides to take some risk in their investing, so it turns out that the sinking fund earns j2 = 8%. The semi-annual cost of the debt is $6,858.18. What is the book value of the debt at the end of 2 years? (Answer to the nearest dollar) O A $85.845 B. $70,877 O c. $71,093 OD. $85,740 A city borrows $100.000, paying interest at j2 = 7%. They make semi-annual deposits in a sinking fund to repay the loan upon maturity. The city decides to take some risk in their investing, so it turns out that the sinking fund earns j2 = 8%. The semi-annual cost of the debt is $6,858.18. What is the book value of the debt at the end of 2 years? (Answer to the nearest dollar) O A $85.845 B. $70,877 O c. $71,093 OD. $85,740
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