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A firm wishes to establish a fund which, in 10 years, will accumulate to $100,000,000. The fund will be used to repay an outstanding bond issue. The firm plans to make deposits, which will earn 4.75% percent, to this fund at the end of each of the 10 years prior to maturity of the bond. How large must these deposits be to accumulate to $100,000,000?

Financial Management, Finance

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