Dan is also considering whether to issue coupon$-$bearing bonds or zero$-$coupon bonds. The YTM on either bond issue will be $5\mathrm{.}8$ percent coupon bond would have a $5\mathrm{.}8$ percent coupon rate. The company$$s tax rate is $21$ percent.

$2.$ How many of the coupon bonds must East Coast Yachts issue to raise the $$60$ million? How many of the zeroes must it issue?

$3.$ In $20$ years, what will be the principal repayment due if Ear Coast Yachts issues the coupon bonds? What if it issues the zeroes?

$4.$ what are the company$$s considerations in issuing a coupon bond compared to a zero coupon bond?

$5.$ Suppose East coast Yachts issues the coupon Bonds with a make$-$whole call provision. The make$-$whole call rate is the treasury rate plus $0\mathrm{.}40\%.$ If East Coast calls the bonds in seven years when the treasury rate is $4\mathrm{.}3$ percent $,$ what is the call price of the bond? What if the treasury rate is $6\mathrm{.}7$ percent?

$6.$ Are investors really made whole with a make$-$whole call provision?

$7.$ After considering all the relevant factors, would you recommend a zero coupon issue or a regular coupon issue? Why? Would you recommend an ordinary call feature or a make$-$whole call feature? Why?