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*Please solve using excel and show excel formulas* A B D E F G H 3 4 1. XYZ Inc. sold $5,000,000 of 7.5%, 25-year,
*Please solve using excel and show excel formulas*
A B D E F G H 3 4 1. XYZ Inc. sold $5,000,000 of 7.5%, 25-year, semiannual payment bonds 20 years ago. The bonds are not callable, but they do have a sinking fund provision requiring 10% of the original face value to be redeemed each year ($500,000), beginning in Year 15. To date, 50% of the issue has been retired. The company can either call bonds at par for sinking fund purposes or purchase bonds on the open market, spending sufficient money to redeem 10% of the original face value each year. If the nominal yield to maturity on the bonds is currently 8.25%, what is the least amount of money XYZ Inc. must put up to satisfy the sinking fund provision? (4 points) 5 6 7 Step by Step Solution
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