Problem 1: Gordon company issued $1,000,000 10 year bonds and agreed to make annual sinking fund deposits of $80,000.00. the deposit are made at the end of each year into an account paying 5% annual intrest. What amount will be in the sinking fund at the end of 10 years?
Problem 2: Galway Bay Enterprises issued 10%,8 year, $2,000.00 par value bonds that pay interest semiannually on October 1 and April1. The bonds are dated April 1.2002, and are issued on that date. The discount rate of interest for such bond on April 1,2002, is 12%. What cash proceeds did Galway Bay received from issuance of the bond?