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Sepia Inc. issued bonds for $325,000 that were redeemable in 8 years. They established a sinking fund that was earning 3.96% compounded semi-annually to
Sepia Inc. issued bonds for $325,000 that were redeemable in 8 years. They established a sinking fund that was earning 3.96% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. $0.00 Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 10. $0.00 Round to the nearest cent c. Calculate the interest earned in payment period 11 $0.00 Round to the nearest cent d. Calculate the amount by which the sinking fund increased in payment period 11. $0.00 Round to the nearest cent
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