Class, if a company issues $1 million of 30-year bonds at 5% with coupons paid semiannually, the coupon payment each six months is $25,000. The company will continue to pay this coupon for 60 periods (30*2). However, at the end of the bond terms, the company owes $1 million to the bond holders (30 years from now). If you are a bond holder, you would feel much more relaxed about receiving your principle back at the end of 30 years IF the company was required to pay into a sinking fund.If the company could earn 6% on an investment in a sinking fund, paid monthly, how much would the company need to place in the sinking fund each month?

PV=$1,000,000

n=360(30*12)

i=.5%(6%/12)

Is $5,996 the correct amount?