Suppose That Healdsburg Renegotiates the 8% Notes on December 31

question 29

Essay

Suppose that Healdsburg renegotiates the 8% notes on December 31, 2014 when the going interest rate is 8%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2015, rather than pay the $225 million in a lump sum at maturity. What would the annual payments be?

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Definitions:

Pineapples

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Hotel Accommodations

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Meals

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