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NEED HELP WITH STEP D You need to raise $ 1 , 0 0 0 , 0 0 0 to buy a dam that will

NEED HELP WITH STEP D
You need to raise $1,000,000 to buy a dam that will provide energy to your town. Your tax rate is 40%. You would like to finance the transaction by issuing 20-vear bonds at a 8% coupon rate, payable annually.
(a) What is your before-tax and after-tax "cost of money" (taking into account that the coupon payments on the bonds are tax-deductible, but not the repayment of principal in year 20), if the bonds sell for face value? Briefly discuss your results. Solution: before-tax: 8%, after-tax: 4.8% per year.
(b) Would this financing option be good enough to consider if your minimum acceptable rate of return was 10%?
(c) Would this financing option be good enough to consider if your minimum acceptable rate of return was 4%?
(d) What's the price of the bond at a MARR =10% per year? Use a before-tax analysis and solve manuallv (i.e.. using factor notation). Solution: $829,728.7
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