Wynter Tires Inc. issued $300,000 worth of 5.00% bonds to purchase new equipment for its showroom. It planned to retire this debt in 10 years on maturity by setting up a sinking fund and making equal deposits into it at the end of every six months.

a. If the fund was earning 4.00% compounded semi-annually, calculate the periodic cost of the debt.

Round the sinking fund payment up to the next cent

b. Construct a partial sinking fund schedule, showing the details for the first two and last two payments, and the totals of the schedule.

For answers: Round to the nearest cent

Payment Period	Payment	Interest Earned	Increase in the Fund	Fund Balance	Book Value
0				$0.00	$300,000.00
1
2
: :	: :	: :	: :	: :	: :
: :	: :	: :	: :	: :	: :
		_
Total