What semi-annual payments will pay off the bond in eight


Sega owes money on a bond with 8.5 million dollars that they need to have paid off in eight years. They use a sinking fund to help pay it off. The coupon rate is 5.2% and the rate of return on the sinking fund is 5.6%, What semi-annual payments will pay off the bond in eight years? What is the annual cost of debt? In seven years, what is their book value of debt?

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Financial Management: What semi-annual payments will pay off the bond in eight
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