Question

Starting on June 1, 2026, and continuing until December 1, 2031, a company will need e250 000 semiannually to retire a series of bonds. What equal semiannual deposits in a fund paying j(2) = 10% beginning on June 1, 2021 and continuing until December 1, 2031, are necessary to retire the bonds as they fall due?

Answer 1

Answer:

Bonds issued between interest dates are best understood in the context of a specific example. Suppose Thompson Corporation proposed to issue $100000 bonds. . issuance was slightly delayed, and the bonds were not sold until June 1. .at the time the bonds are actually issued ($100,000 X 12% X 2/12 = $2,000).

Explanation:I