# Thermo-Tech Systems recently sold a $20 million bond issue with a 20-year maturity and a coupon rate

## Question:

a. What must the size of the sinking fund payments be if the fund earns 4.5% compounded semiannually?

b. How much interest will the fund earn in the sixth year?

c. How much will the fund increase in the twenty-seventh payment interval?

d. Construct a partial sin king fund schedule showing details of the first two and the last two payments, and the total of the interest earned. Coupon

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity

Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

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