Essay
Suppose that Healdsburg renegotiates the 8% notes on December 31, 2018, when the going interest rate is 8%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2019, rather than pay the annual interest payments and the $225 million in a lump sum at maturity. What would the annual payments be?
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$225 million would be the PVA;...View Answer
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