Question: GP&L sold $ 1 , 0 0 0 , 0 0 0 of 1 2 percent, 3 0 - year, semiannual payment bonds with a

GP&L sold $1,000,000 of 12 percent, 30-year, semiannual payment bonds with a face value of $1,000,15 years ago. The bonds are not callable, but they do have a sinking fund, which requires GP&L to redeem 5 percent of the original face value of the issue each year ($50,000), beginning in Year 11. To date, 25 percent of the issue has been retired. The company can either call bonds at par for sinking fund purposes or purchase bonds in the open market, spending sufficient money to redeem 5 percent of the original face value each year. If the current market yield of the bonds is 14 percent, what is the least amount of money GP&L must put in to satisfy the sinking fund provision for the next redemption?$37,532$50,127$43,858$43,796$39,422

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