A city has financed a local project with a $600,000 bond issue with a coupon rate of 6% compounded semi-annually, The bonds are redeemable in 13 years. At the same time, a sinking fund earning interest at 5.3% compounded semi-annually is established to accumulate the full $600,000 when the bonds mature in 13 years. Paragraph B a) Find the periodic expense of the debt. BGN/END

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A city has financed a local project with a $600,000 bond issue with a coupon rate of
6% compounded semi-annually. The bonds are redeemable in 13 years. At the same
time, a sinking fund earning interest at 5.3% compounded semi-annually is
established to accumulate the full $600,000 when the bonds mature in 13 years.
Paragraph
B
...
a) Find the periodic expense of the debt.
BGN/END
2x 13-26
600000- 265913.95=334086.05
c) Construct the sinking fund schedule for the 9th year.
Interest
Increase
Payment Periodic
for
Fund
Вook
in the
Number
Payment Payment
Balance Value
Fund
Interval
Totals:
Transcribed Image Text:A city has financed a local project with a $600,000 bond issue with a coupon rate of 6% compounded semi-annually. The bonds are redeemable in 13 years. At the same time, a sinking fund earning interest at 5.3% compounded semi-annually is established to accumulate the full $600,000 when the bonds mature in 13 years. Paragraph B ... a) Find the periodic expense of the debt. BGN/END 2x 13-26 600000- 265913.95=334086.05 c) Construct the sinking fund schedule for the 9th year. Interest Increase Payment Periodic for Fund Вook in the Number Payment Payment Balance Value Fund Interval Totals:
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