Determine the annual deposits that mbi

Reference no: EM132848249

Question: MBI issues $10M, 20-year bonds. The bonds were issued with a contract rate of 5% and a market rate of 6%. As part of the Bond agreement, MBI is committed to making annual sinking fund deposits. The deposits are to be made at the end of each year and will provide a yield of 4%.

Determine the annual deposits that MBI must make to accumulate the $10M fund.

Reference no: EM132848249

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