IN ORDER TO BE ABLE TO PAY THE TOTAL FACE VALUE BACK IN 10 YEARS,...

14. In order to be able to pay the total face value back in 10 years, Target Ltd had decided to use a sinking fund in which it will make semi-annual payments that would serve to accumulate the total face value. The sinking fund pays an interest rate of 3% compounded semi-annually. What is the total semi-annual cash outflow (including coupon payments) for the company? A) $1,500,000 B) $1,860,785 C) $2,162,287 D) $3,662,287 E) $4,860,785