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Danny Lawrence Properties, Inc., has a bond issue that will mature in 25 years for $1
Chapter 14, Problem 21(choose chapter or problem)
QUESTION:
Danny Lawrence Properties, Inc., has a bond issue that will mature in 25 years for $1 million. How much must the company set aside each year in a sinking fund at 8% annual interest to meet this future obligation?
Questions & Answers
QUESTION:
Danny Lawrence Properties, Inc., has a bond issue that will mature in 25 years for $1 million. How much must the company set aside each year in a sinking fund at 8% annual interest to meet this future obligation?
ANSWER:
Step 1 of 3
Future amount upon bond maturity: $1,000,000.
Number of years for maturity: 25 years
Annual interest: 8%