The bond issue has a sinking fund requirement for retiring the entire principal amount of the issue on its maturity date. The coupon rates and rates of return on the sinking fund investments are compounded semiannually. Calculate (Round your answer to the nearest dollar):

a.	The size of the sinking fund payment at the end of every six months.
	PMT	$ 697844
b.	The annual cost of the debt.
	Annual cost of the debt $2075688.11

c.	The book value of the debt at the end of the indicated interval. (Round the sinking fund payment to the nearest dollar before calculating the book value.)
	Book value of the debt	$ ??

Principal				Calculate
amount		Sinking		book value
of bond issue	Term	fund rate of	Coupon rate	at the end
($ millions)	(years)	return (%)	(%)	of interval
8	5	6	8.5	6