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YMMV issues a 10 year $18,000,000 face value bond with a coupon of 4.750%. The yield rate is j(2) = 6.750%. YMMV will also make

YMMV issues a 10 year $18,000,000 face value bond with a coupon of 4.750%. The yield rate is j(2) = 6.750%. YMMV will also make semi-annual deposits in a sinking fund that pays r(1) = 6.160%. Build a spreadsheet showing the bond amortization table and the account balance for the sinking fund. How much are the sinking fund deposits? How much will the bondholders lose if YMMV defaults after 5 years?

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