Question
Sunland Corporation, having recently issued a $20,097,300,15-year bond issue, is committed to make annual sinking fund deposits of $616,700. The deposits are made on the
Sunland Corporation, having recently issued a $20,097,300,15-year bond issue, is committed to make annual sinking fund deposits of $616,700. The deposits are made on the last day of each year and yield a return of10%.
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Will the fund at the end of15years be sufficient to retire the bonds?
Future value of an ordinary annuity$
Will funds be sufficient?
Yes
No
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
