ABC  issues 10 000 bonds, each with a face value of 1000. the term of each bond is 20 years. the bond indenture requires the equal annual sinking fund payments so that all sinking fund payments, invested to earn 5% per annum, accumulate to an amount at the end of 20 years, which is equal to the total face value of the 10000 bonds. 

Find the equal annual sinking fund payment.

Answer rating: 100% (QA)

Solution We can use the formula for the present value of an annuity to cal... View the full answer