Arkham University raises $$30,000,000$ dollars by issuing sinking fund bonds. TheArkham University raises $$30,000,000$ dollars by issuing sinking fund bonds. The

bonds will have a maturity of $29$ years and pay semi$-$annual coupons of $5\mathrm{.}8\%.$

Arkham University will also need to set up a sinking fund to provide for the

retirement of the debt in full in $29$ years. The interest rate on the sinking fund is

$2\mathrm{.}8\%$ compounded semi$-$annually. Calculate the periodic cost of the debt for Arkham

University.

bonds will have a maturity of $29$ years and pay semi$-$annual coupons of $5\mathrm{.}8\%.$

Arkham University will also need to set up a sinking fund to provide for the

retirement of the debt in full in $29$ years. The interest rate on the sinking fund is

$2\mathrm{.}8\%$ compounded semi$-$annually. Calculate the periodic cost of the debt for Arkham

University.