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Arkham University raises $ 2 8 , 5 0 0 , 0 0 0 dollars by issuing sinking fund bonds. The bonds will have a

Arkham University raises $28,500,000 dollars by issuing sinking fund bonds. The bonds will have a maturity of 21 years and pay semi-annual coupons of 5.3%. Arkham University will also need to set up a sinking fund to provide for the retirement of the debt in full in 21 years. The interest rate on the sinking fund is 3.0% compounded semi-annually. Calculate the periodic cost of the debt for Arkham University.
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