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4. A company wants to borrow a large sum of money to be repaid over 10 years. The company can issue bonds paying interest at

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4. A company wants to borrow a large sum of money to be repaid over 10 years. The company can issue bonds paying interest at 12 = 84% redeemable at par in 10 years. A sinking fund earning 112 = 75% can be used to accumulate the amount needed in 10 years to redeem the bonds. At what rate, j12, would the semi-annual cost be the same if the debt were amortized over 10 years? 4. A company wants to borrow a large sum of money to be repaid over 10 years. The company can issue bonds paying interest at 12 = 84% redeemable at par in 10 years. A sinking fund earning 112 = 75% can be used to accumulate the amount needed in 10 years to redeem the bonds. At what rate, j12, would the semi-annual cost be the same if the debt were amortized over 10 years

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