A city has financed a local project with a $700,000 bond issue with a coupon rate of 2% compounded semi-annually. The bonds are redeemable in 10 years. At the same time, a sinking fund earning interest at 3.2% compounded semi-annually is established to accumulate the full $700,000 when the bonds mature in 10 years. 1. Find the periodic expense of the debt. 2. Find the book value of the debt after 7 years. 3. Construct the sinking fund schedule for the 9th year. Paragraph B I U 1. Find the periodic expense of the debt. PMT Setting A un Fa 30 h