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To raise $6,000,000 to expand into new markets, a very successful laptop manufacturing company issued bonds with a coupon rate of 3.50% compounded semi-annually, paying

To raise $6,000,000 to expand into new markets, a very successful laptop manufacturing company issued bonds with a coupon rate of 3.50% compounded semi-annually, paying interest every 6 months, and redeemable in 18 years. They established a sinking fund to retire this debt on maturity and made equal deposits into the fund at the end of every 6 months.

a. If the fund was earning 2.75% compounded semi-annually, calculate the periodic cost of the debt. Round the sinking fund payment up to the next cent

b. Calculate the book value of the debt at the end of 7 years.

* please show how all calculations were calculated step by step so I can follow how answers were concluded. Thank you!

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