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SSA must also make arrangements for paying the funds back so they create a sinking fund on the date the bonds were issued ( Jan
SSA must also make arrangements for paying the funds back so they create a sinking fund on the date the bonds were issued Jan to ensure that funds will be available to pay the $ face value on the redemption date Jan
a What is the size of the sinking fund deposit, if the sinking fund earns compounded semiannually?
BGNEND
table
b What is the periodic costexpense of the debt?
c Create a sinking fund schedule of the last two payments and the schedule totals.
tabletablePaymentIntervalPayment,tableInterestEarnedtableIncrease inFundFund Balance,Book ValueTotals
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