A company can borrow $740000 for 6 years by issuing bonds, on which interest is paid annually at j1=6% and the principal is paid off using a sinking fund earning j1=5%. The other option is to borrow $740000 from a bank and repay the loan over 6 years with equal annual payments at j1=9% Which option will result in a smaller periodic cost for the company? Answer How m ith this option? Answer: $ NOTE: Round dollar values appropriately and use them in subsequent calculations. A company can borrow $740000 for 6 years by issuing bonds, on which interest is paid annually at j1=6% and the principal is paid off using a sinking fund earning j1=5%. The other option is to borrow $740000 from a bank and repay the loan over 6 years with equal annual payments at j1=9% Which option will result in a smaller periodic cost for the company? Answer: How much will you save each period with this option? Answer: $ NOTE: Round dollar values appropriately and use them in subsequent calculations