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Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: - Principal: $1,000 - Coupon rate of interest: 6 percent -

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Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: - Principal: $1,000 - Coupon rate of interest: 6 percent - Term to maturity: 17 years - Sinking fund: 3 percent of outstanding bonds retired annually, the balance at maturity a. If you buy the bond today at its face amount and interest rates rise to 10 percent atter two years have passed, what is your capital gain or loss? Assume that the bond Days interest annually. Use Appendix B and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value, Round your answer to the nearest dollar. b. If you hold the bond 17 years, what do you recelve at maturity? c. What is the bond's current ylele as of right now? Round your answer to the nearest whole number. Q\% d. Given your price in a, what is the yeld at maturity? Round your answer to the nearest whole number: e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number. Q % f. If the final payment to retire this bond is $1,100,000, how much must the firm invest annually to sccumulate this sum if the firm is able to earn 6 percent on the invested funds? Use Appendo C to answer the question. Round your answer to the nearest doliar

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