Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 14, Problem 1CP

a.

Summary Introduction

To evaluate: The sinking fund provision

Introduction:

Sinking fund factor is one of the ratios used to calculate the future value. This future value is related to the series of equal annual cash flows.

b.

Summary Introduction

To evaluate: The impact of sinking fund provision on expected average life, total principal and interest payments of the proposed security.

Introduction:

Sinking fund factor is one of the ratios used to calculate the future value. This future value is related to the series of equal annual cash flows.

c.

Summary Introduction

To evaluate: The rationale for demanding a sinking fund provision.

Introduction:

Sinking fund factor is one of the ratios used to calculate the future value. This future value is related to the series of equal annual cash flows.

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