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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
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. 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? 3. Suppose ScanSoft discovers on January 20, 2031, that it can earn 2.5% interest compounded semi-annually on its sinking fund account. What is the balance in the sinking fund after the January 20, 2031, sinking fund payment? b. What is the new sinking fund payment if the fund begins to earn 2.5% on January 21
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