Question
please show all calculations in excel 1. You need to establish a sinking fund that in 20 years will pay off an outstanding bond issue
please show all calculations in excel 1. You need to establish a sinking fund that in 20 years will pay off an outstanding bond issue of $8,500,000. You plan to make deposits, which will earn 2.65 percent per year, to this fund at the end of each of the 20 years prior to maturity of the bond.
A. What is the amount of the annual payments to be paid? (End and begining of each year)
B. What would be the amount of the annual payments if the payments were instead spread out evenly throughout the year (i.e., daily)? Use the mid-year approximation formula.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started