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Sepia Inc. issued bonds for $ 3 5 0 , 0 0 0 that were redeemable in 6 years. They established a sinking fund that
Sepia Inc. issued bonds for $ that were redeemable in years. They established a sinking fund that was earning compounded semiannually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 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
Round to the nearest cent
c Calculate the interest earned in payment period
Round to the nearest cent
d Calculate the amount by which the sinking fund increased in payment period
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