Atchison Lamp Co. wanted to raise funds for a capital expansion, so it issued a $850,000 bond that pays a 5.50% coupon rate quarterly for 13 years. They set up a sinking fund to repay the debt at the end of 13 years and made deposits at the end of every three months into the fund. The sinking fund was earning 8.50% compounded quarterly.

a. Calculate the size of the periodic interest payments of the bond.

Round to the nearest cent

b. Calculate the size of the periodic deposits into the sinking fund.

Round up to the next cent

c. Calculate the periodic cost of the debt.

Round to the nearest cent

d. Calculate the book value of the debt after 5 years.

Round to the nearest cent