TOTAL OF PAYMENTS | INTEREST EARNED | INCREASE IN FUND

Question 5 of 5 Wynter Tires Inc. issued $300,000 worth of 5.00% bonds to purchase new equipment for its showroom. It planned to retire this debt in 10 years on maturity by setting up a sinking fund and making equal deposits into it at the end of every six months. a. If the fund was earning 4.00% compounded semi-annually, calculate the periodic cost of the debt. $0.00 Round the sinking fund payment up to the next cent b. Construct a partial sinking fund schedule, showing the details for the first two and last two payments, and the totals of the schedule. For answers: Round to the nearest cent Payment Period Payment Interest Earned Increase in the Fund Fund Balance Book Value 0 $0.00 $300,000.00 1 $0.00 $0.00 $0.00 $0.00 $0.00 N $0.00 $0.00 $0.00 $0.00 $0.00 :: .. :: .. :: 0 $0.00 $0.00 0 0.00 $0.00 $0.00 $0.00 $0.00