Question: [PLEASE DO IT MANUALLY, NOT WITH EXCEL. THANK YOU.] A company issues $500 000 worth of bonds, payinginterest at i(2) = 8%. A sinking fund
[PLEASE DO IT MANUALLY, NOT WITH EXCEL. THANK YOU.]
A company issues $500 000 worth of bonds, payinginterest at i(2) = 8%. A sinking fund with semi-annual deposits accumulating at i(2) = 4% is established to redeem the bonds at the end of 20 years. Determine a) the semi-annual expense of the debt; b) the book value of the company indebtedness at the end of the 15th year.
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