Committed to make annual sinking fund deposits

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Reference no: EM131259855

HBC Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make annual sinking fund deposits of $613,500. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds?

Reference no: EM131259855

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