A corporation needs to raise money and sells an issue of 4%, 20-year nonds worth $1,000,000 to an investment company for $970,000. An initial cost of $50,000 is incurred for legal fees, and accounting...

A corporation needs to raise money and sells an issue of 4%, 20-year nonds worth $1,000,000 to an investment company for $970,000. An initial cost of $50,000 is incurred for legal fees, and accounting fees will run $10,000 annually. What is the cost of money to the corporation?