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# A city issues $100,000 worth of bonds paying interest at j2 = 7%. They make semiannual deposits in a sinking fund to pay for the redemption of the bonds. The city decides to take some risk in their investing, so

A city issues $100,000 worth of bonds paying interest at j2 = 7%. They make semiannual deposits in a sinking fund to pay for the redemption of the bonds. The city decides to take some risk in their investing, so it turns out that the sinking fund earns j2 = 8%. The semiannual cost of the debt is $6,858.18. What is the book value of the debt at the end of 2 years? (Answer to the nearest dollar)

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## Calculation of book value of the debt at the end of View the full answer

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