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I need help with this problem please indicate your full solution. Thank you. Sepia Inc. issued bonds for $450,000 that were redeemable in 10 years.
I need help with this problem please indicate your full solution. Thank you.
Sepia Inc. issued bonds for $450,000 that were redeemable in 10 years. They established a sinking fund that was earning 4.67% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 14. Round to the nearest cent c. Calculate the interest earned in payment period 15 . Round to the nearest cent d. Calculate the amount by which the sinking fund increased in payment period 15. Round to the nearest centStep by Step Solution
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