b. Serial bonds of $1,000,000 were sold at 99 on January 1, 2016, to help finance a new city hall and cultural center. An additional $750,000 was received from an anonymous benefactor. The 5% serial...

b. Serial bonds of $1,000,000 were sold at 99 on January 1, 2016, to help finance a new city hall and cultural center. An additional $750,000 was received from an anonymous benefactor. The 5% serial bonds were to be redeemed in annual amounts of $100,000, beginning on January 1, 2019. A sinking fund was established on January 2, 2016, to provide for the retirement of the serial bonds. Deposits of $70,000 were to be made on January 2 of each year, beginning in 2016. All amounts deposited were invested immediately at a net yield of 8%.