You own a noncallable, sinking tund debenture with the following features: Face Value - $1,000...
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You own a noncallable, sinking tund debenture with the following features: Face Value - $1,000 Coupon rate is 7.00% Term to maturity is 10 years Sinking tund is 5% of outstanding bonds retired annually, the balance at maturity If the final payment to retire this bond is $1,000,000, how much must the firm invest annually to accumulate this sum if the firm is able to earn 7% on the invested funds
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