6 The Harding Corporation has $51.6 million of bonds outstanding that were issued at a coupon nie of 11.25 percent seven years ago Interest rates have fallen to 10 percent. Preston Alter, the vice-president of finance, does not expect ates to tad any bater. The bon have 18 years left to maturity, and Preston would like to refund the bonds with a new issue of erged amount also having maturity. The Harding Corporation has a tax rate of 25 percent. The underwriting cost on the old issue was 41 percent of the to bond value. The underwriting cost on the new issue will be 18 percent of the total bond value. The original bond indentare contamed a five-year protection against a call, with an 8 percent call premium starting in the sixth year and scheduled to declee by one bull percent each year thereafter (Consider the bond to be seven years old for purposes of computing the premium Uve Appendix D a. Compute the discount rate. (Round the final answer to 2 decimal places.) Discount rate % b. Calculate the present value of total outflows. (Enter the answers in whole dollars, not in millions. Round "PV Factor" to 3 deci places. Do not round intermediate calculations. Round the final answer to nearest whole dollar) Total outflows c. Calculate the present valueal inflows. (Enter the answers in whole dollars, not in millions. Round "PV Factor" to 3 da places. Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total inflows $ d. Calculate the net present value. (Enter the answers in whole dollars, not in millions. Round "PV Fector" to 3 decime not round intermediate calculations. Round the final answer to nearest whole dollar. Negative amount should be ind minus sign.) Next