Winooski Lamp Co. has borrowed $95 000 for capital expansion. The company must pay the interest on the loan at the end of every 6 months and make equal payments at the time of the interest payments into a sinking fund until the loan is retired in 20 years. Interest on the loan is 9% compounded semi-annually, and interest on the sinking fund is 7% compounded semi-annually. (Round all answers to the nearest dollar.)
(a) Determine the size of the periodic interest expense of the debt.
(b) Determine the size of the periodic payment into the sinking fund.
(c) What is the periodic cost of the debt?
(d) What is the book value of the debt after 15 years?