Company DD will need to borrow 50 million in the beginning of Year 2 for two years. It has approached several banks and received the best offer from Bank UU at 1.5% per annum. The table below gives a summary of company DD's current bonds. Price (as a % of par value) 89.50 98.75 130.25 1-year 3% coupon 2-year 5% coupon 3-year 7% coupon Should company DD accept the offer? Give reasons. Show all workings. Ignore transaction costs.