1 of 9 A $25,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.50% compounded semi-annually. The deposits were made to the fund at th end of every 6 months. a. Calculate the size of the periodic payments deposited. Round your answer up to the next cent b. What was the total interest earned by the fund? Round to the nearest cent Question 2 of 9 Sepia Inc. issued bonds for $350,000 that were redeemable in 7 years. They established a sinking fund that was earning 4.62% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b. Calculate the sinking fund balance at the end of the payment period 8. Round to the nearest cent c. Calculate the interest earned in payment period 9. d. Calculate the amount by which the sinking fund increased in payment period 9. Round to the nearest cent Question 3 of 9 To raise $5,000,000 to expand into new markets, a very successful laptop manufacturing company issued bonds in the market with a coupon rate of 7.00%, paying interest every 6 months, and redeemable in 15 years. They established a sinki fund to retire this debt on maturity and made equal deposits into the fund at the end every half-year. a. If the fund was earning 4.20% compounded semi-annually, calculate the periodic cost of the debt. Round to the nearest cent b. Calculate the book value of the debt after 11 years. Round to the nearest cent Question 4 of 9 A delivery service feels they could increase their profits by purchasing a new truck for $57,000. This should lead to increased profits of $19,000 in the 1st year, $12,500 in the 2nd year, and $13,000 in the 3rd year. It could sell the truck at the end of 3 years for $12,500. a. If the company's required rate of return is 7.5% compounded annually, what is the Discounted Cash Flow (DCF) of the net returns? Round to the nearest cent b. Is this a worthwhile investment? a. Yes b. No >> Question 5 of 9 Shane was offered two options for a car he was purchasing: Lease option Pay lease amounts of $450 at the beginning of every month for 7 years. At the the end of 7 years, purchase the car for $14,500. Buy option Purchase the car immediately for $22,500. Which option should he choose if money is worth 6.20% compounded monthly? (click to select) (click to select) Lease Option Buy Option