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The government is considering borrowing $4,000,000 to build a new expressway. Zaphod Beeblebrox, the president, is considering borrowing the funds using one of two methods.

The government is considering borrowing $4,000,000 to build a new expressway. Zaphod Beeblebrox, the president, is considering borrowing the funds using one of two methods. 5 6 9 The first method would involve borrowing the funds from a bank and amortizing the loan over a period 17.0 years at a rate of 9.6% compounded semi-annually. The loan would be repaid with semi-annual payments comprising of intertest and principal. The second method would involve issuing 17.0-years sinking funds bonds. The bonds

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