Hassan Mustafa realized that when the bonds mature on January 20, 2041, there must be $5,200,000 available to repay the bondholders. To have enough money on hand to meet this obligation, He suggested that ScanSoft set up a sinking fund (an interest-bearing account into which payments are made at regular intervals to provide a desired sum of money at a specified future time) using a specially designated savings account. The company earns interest of 1.6% compounded semi-annually on this sinking fund account. ScanSoft began making semi-annual payments to the sinking fund on July 20, 2021. ScanSoft issued the bonds, sold them all to the investment dealer, and used the money raised to continue its research and development. 1. How much would an investor have to pay for one of these bonds to earn 4.4% compounded semi-annually? 2. 3. Suppose ScanSoft discovers on January 20, 2031, that it can earn 2.5% interest compounded semi-annually on its sinking fund account. a. What is the balance in the sinking fund after the January 20, 2031, sinking fund payment? a. What is the size of the sinking fund payments? b. What will be the total amount deposited into the sinking fund account would be by January 2041? c. How much of the sinking fund will be interest? b. What is the new sinking fund payment if the fund begins to earn 2.5% on January 21, 2031? c. What will be the total amount deposited into the sinking fund account the life of the bonds? d. How much of the sinking fund will then be interest? I need answe for question 3 a b c d plz
Hassan Mustafa realized that when the bonds mature on January 20, 2041, there must be $5,200,000 available to repay the bondholders. To have enough money on hand to meet this obligation, He suggested that ScanSoft set up a sinking fund (an interest-bearing account into which payments are made at regular intervals to provide a desired sum of money at a specified future time) using a specially designated savings account. The company earns interest of 1.6% compounded semi-annually on this sinking fund account. ScanSoft began making semi-annual payments to the sinking fund on July 20, 2021.
ScanSoft issued the bonds, sold them all to the investment dealer, and used the money raised to continue its research and development.
1. How much would an investor have to pay for one of these bonds to earn 4.4% compounded semi-annually?
2.
3. Suppose ScanSoft discovers on January 20, 2031, that it can earn 2.5% interest compounded semi-annually on its sinking fund account.
a. What is the balance in the sinking fund after the January 20, 2031, sinking fund payment?
a. What is the size of the sinking fund payments?
b. What will be the total amount deposited into the sinking fund account would be by January 2041?
c. How much of the sinking fund will be interest?
b. What is the new sinking fund payment if the fund begins to earn 2.5% on January 21, 2031?
c. What will be the total amount deposited into the sinking fund account the life of the bonds?
d. How much of the sinking fund will then be interest?
I need answe for question 3 a b c d plz
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