Bramble Corporation, having recently issued a $20,094,900, 15-year bond issue, is committed to make annual sinking fund deposits of $617,600. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity   $ Will funds be sufficient

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A:

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Q: 124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0221 0.3267547 0.3235304 0.3203485 0.3141098…

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A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

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Q: Visano

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A: a)  Size of the quarterly payment N = 5*4 =20 I/Y = 8/4 = 2 PV =0 FV = -600,000 Compute PMT

Characteristics of Bonds