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On January 1, 2022, LaBrea Company sold $250,000 of 10% bonds, due January 1, 2032. The market interest rate in existence when these bonds were

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On January 1, 2022, LaBrea Company sold $250,000 of 10% bonds, due January 1, 2032. The market interest rate in existence when these bonds were sold was 9 percent. Interest on these bonds is paid semi-annually on July 1 and January 1 of each year. What is the dollar amount of proceeds received on this bond issue? B. LaBrea wants to periodically set aside a sum of money in order to have the funds necessary to retire the bonds at maturity in 2032. Since LaBrea was in a tight cash position during the years 2022 through 2026, the first contribution into the fund will be made on January 1, 2027. Assume that, starting with the January 1, 2027 contribution, LaBrea desires to make a total of five equal annual payments into this fund. Compute the amount of these contributions assuming the interest rate of the fund is 6 percent

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