Math WORD PROBLEM HELP HELP PLEASE WRITE OUT EXPLANATION?

Question

GP&L sold $1,000,000 of 12%, 30year, semiannual payment bonds 15 years ago. The bonds are not callable, but they do have a sinking fund which required GP&L to redeem 5% of the original face value of the issue each year ($50,000), beginning in year 11. To date, 25% of the issue has been retired. The company can either call bonds at par for sinking fund purposes or purchase bonds on teh open market, spending sufficient money to redeem 5% of the original face value each year. If the nominal yeild to maturity (15years remaining) on the bonds is currently 14%, what is the least amount of money GP&L must put up to satisfy the sinking fund provision?

Answer 1

HOW WILL YOU EVER LEARN IF YOU GET OTHERS TO DO YOU WORK FOR YOU!!

THERE IS A REASON MOMMY AND DADDY WONT HELP YOU!!

Answer 2

By using negative dialectics and, assuming that GP&L were the original purchasers of the bond, the answer is fairly straightforward. Let's say that the face value of the bond is unknown. The formula should work for any amount. You can substitute the $1,000,000 later.

First let LAM stand for "least amount of money"
Let OM stand for "open market"
Let NY stand for "nominal yield"
Let FC stand for "face value"
Let T stand for "time"

Ergo:

LAM = T/FC*(OM + NY)
IF T is greater than or equal to 15*365/OM raised to the power of FC, then OM/NY=SQR(FC/T)
ELSE OM/T+365(NY)**FC
LAM = T/MONY-FC


As you can see, in the first circumstance, negative dialectics requires 12% of the difference between FC and the OM-14%.
In the second example, negative dialectics obviates the pertinent factors, making the point moot.

The best alternative, as I see it, is to change your goal from obtaining an MBA to being a retail clerk at your local pharmacy.

Answer 3

the answer is 140,000
take the amount of money in the first line and multiply it by .14 which is 14%

Answer 4

LOL @ all of your questions being math problems you can't do...

shame on you.