Henderson Inc. needs to raise $15 million for its research and development program. Its investment banker suggested raising the funds through the issuance of original issue discount bonds. The bonds would be outstanding for five years, have a semiannual coupon rate of 6%, and a maturity value of $1,000 each. The current market conditions require a yield of 8%, given Henderson's bond rating. Henderson's marginal income tax rate is 40%. Ignore the issue expense of the bonds and round all calculations to the nearest dollar. Assume the bonds are issued on the first day of the fiscal year. Questions A. What is the issue price of each bond? Show your calculations. B. How many bonds will Henderson have to issue? Show your calculations. C. Determine the net after-tax cash flows per bond to Henderson relating to the bonds at issuance (time = 0) and for each of the five years they are outstanding. Show your calculations. D. Assume that at the end of three years, interest rates are 6% for bonds rated the same as Henderson's and maturing at the same time. What would a rational investor be willing to pay for one of Henderson's bonds? Show your calculations.