Question 7 (5 points) XCAT Corporation raised $1.20 million dollars by issuing 15-year bonds with a coupon rate of 6% (compounded semi-annually). As part of the bond contract, XCAT agreed to create a sinking fund over the 15-year period to ensure it would have sufficient funds to repay the principal amount at maturity. Assuming XCAT will make semi-annual payments, and the fund will earn 5% compounded semi-annually, what is the book value of the sinking fund after 7.5 years (halfway point)? Format BIU