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You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 8 percent Term to maturity: 16 years

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You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 8 percent Term to maturity: 16 years Sinking fund: 5 percent of outstanding bonds retired annually; the balance at maturity a. If you buy the band today at its face amount and interest rates rise to 13 percent after five years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix Band Appendix D to answer the question. Use a minus sian to enter the loss amount, if any, as a negative value Round your answer to the nearest dollar $ If you hold the bond 16 years, what do you receive at maturity c. What is the band's current yield as of right now? Round your answer to the nearest whole number d. Given your price in a what is the yield at maturity? Round your answer to the nearest whole number What proportion of the total debt issue is retired by the sinking Fund? Round your answer to the nearest whole number, If the final payment to retire this bond is $1,100,000, how much must the firm invest annually ta accumulate this sum If the firm is able to earn 8 percent on the invested funds? Use Appendix to answer the question. Round your answer to the nearest dollar

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