TFC Inc. issues a bond with a face value of $40,000,000 with a coupon rate of 3.250% maturing in 5 years. The current yield rate is r(12) = 1.000%. TFC will secure the bond by making monthly deposits...

TFC Inc. issues a bond with a face value of<br>$40,000,000 with a coupon rate of 3.250%<br>maturing in 5 years. The current yield rate is<br>r(12) = 1.000%. TFC will secure the bond by<br>making monthly deposits of $575,657.30 into<br>a sinking fund paying r% compounded<br>annually. What is r?<br>а.<br>6.660%.<br>b.<br>6.000%.<br>С.<br>7.080%.<br>d.<br>7.140%.<br>е.<br>5.520%.<br>

Extracted text: TFC Inc. issues a bond with a face value of $40,000,000 with a coupon rate of 3.250% maturing in 5 years. The current yield rate is r(12) = 1.000%. TFC will secure the bond by making monthly deposits of $575,657.30 into a sinking fund paying r% compounded annually. What is r? а. 6.660%. b. 6.000%. С. 7.080%. d. 7.140%. е. 5.520%.

Jun 02, 2022

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TFC Inc. issues a bond with a face value of $40,000,000 with a coupon rate of 3.250% maturing in 5 years. The current yield rate is r(12) = 1.000%. TFC will secure the bond by making monthly deposits...

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