A company wants to issue a bond of $650mn and thinks - based on a very poor estimate - it can pay a coupon of 5% to investors. The company has revenues of $200mn., an EBIT (operating) margin of 20% and current interest payments of $10mn. The current risk-free (base) rate is 4%. Please answer the questions: (a) Is the assumed coupon of 5% fair? (b) If not: what is a fair coupon for the company? Please answer by completing all answer boxes in the solutions template, and by giving brief verbal or numerical explanations of your calculations. Question 4: Cost of Capital (Pt. 2) [Please insert your Question 4 verbalnumerical explanations of your results here. Extend the length of the text box as much as necessary]