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help me Question 30 (2 points) Listen A city wishes to finance the cost of a new sports arena through the issue of a $5
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Question 30 (2 points) Listen A city wishes to finance the cost of a new sports arena through the issue of a $5 million, 20-year bond. The bond pays semi-annual interest at a rate of i2=4%. In addition to the interest payments, the city must also make semi-annual contributions to a sinking fund that will be used to repay the bond principal ($5 million) at the end of 20 years. The sinking fund will earn 32=3%. a) Calculate the semi-annual sinking fund deposit to 2 decimals: A/ b) Calculate the total periodic cost of debt to 2 decimals: A/ Step by Step Solution
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