A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds.
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A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds.
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- A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for P9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond 1. issue and will make semiannual deposits that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds. 2. A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these bonds, what would the selling price have to be? 3. A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed atA corporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos forP9.5 Million pesos. The bonds bear interest at 16%, payable semiannually. The company wishesto establish a sinking fund for retiring the bond issue and will make semiannual deposits thatwill earn12%, compounded semi annually. Compute the annual cost for interest and redemptionof these bonds.A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000for ₱11,000,000. The bonds bear interest at 15%, payable semiannually. The companywishes to establish a sinking fund for retiring the bond issue and will make semiannualdeposit that will earn 12%, compounded semiannually. Show the cash flow diagram, andcompute the annual cost for interest and redemption of these bonds
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