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Calculate part a, b, c, d Sepia Inc. issued $475,000 bonds that were redeemable in 7 years. They established a sinking fund that was earning
Calculate part a, b, c, d
Sepia Inc. issued $475,000 bonds that were redeemable in 7 years. They established a sinking fund that was earning 3.25% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made into the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposits. $0.00 Round up to the next cent b. Calculate the sinking fund balance at the end of the 4th payment period. $0.00 Round to the nearest cent c. Calculate the amount of interest earned during the 5th payment period. $0.00 Round to the nearest cent. d. Calculate the amount by which the sinking fund increased in the 5th payment period. SO 00Step by Step Solution
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