Crane Company issued $$500,000$ of $5-$year, $7\%$ bonds at $98$ on January $1,2022.$ The bonds pay interest annually.

$($a$1)$

$($a$2)$

$($b$1)$

$($b$2)$

Compute the total cost of borrowing for these bonds, assuming the bonds were issued at $103.$

Total cost of borrowing