After Dan's EFN (External Finance Needed) analysis for East Coast Yachts, Larissa (the founder of East Coast Yachts) has decided to expand the company's operations. She has asked Dan to enlist an underwriter to help sell $70 million in new 20-year bonds to finance new construction. Dan has entered into discussions with Kim McKenzie, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isn't clear on how each feature would affect the coupon rate of the bond issue Part 1-Q1: You are Kim's assistant, and she has asked you to prepare a memo to Dan describing the effect of each of the bond features on the coupon rate of the bond d. Complete the following tasks for each bond 1. 2. Describe characteristics of the bond Determine whether the bond with feature benefits the issuers or investors. In addition, explain why you think so Effect of the feature on coupon rates "A rule of thumb with bond provisions is to determine who the provisions benefit. If the company benefits, the bond will have a higher coupon rate. If the bondholders benefit, the bond will have a lower coupon rate. " Provide the reference information 3. 4. P1-01: Fill the boxes Bonds Bond issuers Bondholders Description Whom does this feature benefit?And, Effect on coupon rates (f textbook, provide the page number. If Features Type of bonds do you think so other sources, provide information Secured bond Unsecured bond : Senior bond Collateral Seniority Junior or Subordinated bond Callable bond Non-callable bond Puttable bond Bond with positive covenants Bond with negative covenants Call provision Covenants