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A corporation sold an issue of 20-year bonds, having a total face value of 10,000,000 Birr for 9,500,500 Birr. The bonds bear an interest at
A corporation sold an issue of 20-year bonds, having a total face value of 10,000,000 Birr for 9,500,500 Birr. The bonds bear an interest at 16%, payable semi-annually. The company wishes to establish a sinking fund for retiring the bond issue and will make semi-annual deposits that will earn 12%, compounded semi-annually. Compute the annual cost for interest and redemption of these bonds
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