Debt Cost of Capital and Promised Yield: Assume the company has a debt agreement with the following characteristics:

a$.$ Calculate the expected cash flows for the debt.

b$.$ Assume the investors require an expected annual rate of return of $13\%$ for a debt security with this level of risk. Calculate the amount the investors would be willing to pay for this debt security.

c$.$ Ignore part b$,$ and instead assume the debt security is sold for $$880\mathrm{.}73.$ Calculate the debt cost of capital implied in this price.