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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
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. Schedule can be completed in Excel. No work needs to be shown for schedule entries. a. If the fund was earning 4.00% compounded semi-annually, calculate the periodic cost of the debt. [ 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
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