A real estate development company wants to issue a 10-year corporate bond worth 10 million. The company has the following options: a) To make the issue of corporate bonds by public offering. In this case the bond will be sold at par, the yield is 8%, the cost of the contractor is 0.5% of the nominal value of the bond and we assume that there are no other costs associated with its issue. b) To make the issue of the corporate bond by private placement. In this case it will be sold at par, its yield is 8.125% and the cost of the private placement is assumed to be 20,000 . If the discount rate is 8% and the coupon is paid annually, compare the two above scenarios and show which of the two options the company would prefer.