Question
Charon Circuits just announced a 10-year, semiannual coupon payment bond issue with an original issue size of $20 million and a coupon of 8%. No
Charon Circuits just announced a 10-year, semiannual coupon payment bond issue with an original issue size of $20 million and a coupon of 8%. No principal will be repaid during the first two years; however, a sinking fund arrangement calls for 10% of the remaining principal to be repaid at the end of each year beginning at the end of year 3 and continuing until the full repayment of the remaining principal at the end of the 10thyear.
Create a payment schedule detailing Charon's interest and principal payment obligation. Note that there are two interest payments per year and the sinking fund requires only one principal payment per year.
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