A company decides to issue a total of $75 million of $1,000 par value bonds with a 3.75% coupon (paid semiannually for 15 years, the maturity date). The bonds are sold on the market for $815 each ($745 net after broker's fees and expenses).

a) CFD

b) What is the company's cost of capital raised through this bond sale?

c) Is it attractive for investor who is seeking 12% annual effective return?

d) What is the maximum amount such an investor could pay to achieve 12% annual effective return?