Bobby Bonilla was an All Star player for the Pittsburgh Pirates and he became a free agent. He signed a deal with the New York Mets and was actually productive for them. However, he missed a lot of games and the fan base never quite embraced him. He had one year left on his contract $(1996)$ and the Mets owed him $$5\mathrm{.}9$MM$.$

However, the Mets ownership had started to invest their money with a wunderkind investor $$ Bernie Madoff. Madoff would get the Mets at least a $10\%$ return on their money if they invested it with him.

Instead of paying Bonilla his $$5\mathrm{.}9$MM in $1996,$ they will pay him $$1\mathrm{.}2$MM$/$yr from $2011$ to $2025.$ The long term bond rate is $4\%.$

a$.10$ pts$.$ Is this a good or bad deal for the Mets?

b$.5$ pts$.$ What is the break even rate for the Mets?