of $14$ years. The investors require a rate of return of $8$ percent.

a$.$ Compute the market value of the bonds.

b$.$ What will the net price be if flotation costs are $12$ percent of the market price?

c$.$ How many bonds will the firm have to issue to receive the needed funds?

d$.$ What is the firm's after$-$tax cost of debt if its marginal tax rate is $26$ percent?

a$.$ What is the market value of the bonds?

$ $($Round to the nearest cent.$)$

b$.$ What will the net price be if flotation costs are $12$ percent of the market price?

$($Round to the nearest cent.$)$

c$.$ How many bonds will the firm have to issue to receive the needed funds?

bonds $($Round to the nearest whole number.$)$

d$.$ What is the firm's after$-$tax cost of debt if its marginal tax rate is $26$ percent?

$\%($Round to two decimal places.$)$