Final answer:
Without the interest rate for the sinking fund deposits, we cannot confirm if Shamrock Corporation's sinking fund will cover their bond issue, but typically well-calculated deposits should. The related bond question suggests you would pay less than the face value for a bond if current interest rates are higher than the bond's rate.
Step-by-step explanation:
The student's question pertains to whether the annual sinking fund deposits by Shamrock Corporation will be sufficient to retire their 15-year bond issue at the end. This requires an understanding of financial mathematics and bond amortization, but since no interest rate is provided, we cannot calculate the future value of the sinking fund deposits to determine if the fund at the end of 15 years would be enough to cover the bond issue of $20,069,100. Typically, a sinking fund's future value would suffice if the periodic deposits are calculated correctly considering the interest rate over the bond term.
Regarding the question about the local water company's bond, if you were to buy this bond one year before its maturity when the interest rates have risen from 6% to 9%, you would expect to pay less than $10,000 for it. This is because the bond would be less attractive than newer bonds offering higher interest rates, leading to a discount in its price.