A 1 million bond issue is outstanding. Assume deposits earn 8 percent per annum. Calculate the amount to be deposited to a sinking fund each year in order to accumulate enough money to retire the entire 1 million issue at the end of 20 years.

A 1 million bond issue is outstanding. Assume deposits earn 8 percent per annum. Calculate the amount to be deposited to a sinking fund each year in order to accumulate enough money to retire the entire 1 million issue at the end of 20 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

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