A firm issues $300 million in ten-year bonds with an annual coupon rate of 8%. The firm uses a sinking fund to repurchase 10% of the bond issue on each coupon payment date. What payment must they make on the tenth and final coupon payment?

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D) Final coupon payment = 0.08 × $300 million = $24 million; 11ea84dc_f518_dc4e_9a63_9d74333add16_TB1316_00_TB1316_00 total payment = $30 million + $24 million = $54 million

A Firm Issues $300 Million in Ten-Year Bonds with an Annual