Please solve all three parts. By the way, (c) is the most important part. So, please do not omit part (c). Thank you.

5. (20 points) Assume that your company needs $1,000,000. You are thinking to issue 10-year bonds with quarterly coupons. You want to avoid large payments at maturity so want the total face value to be $500,000. You expect yield to maturity to be 10%. (a) (5 points) What should be the annual coupon rate on your bonds? (b) (5 points) Assume that you can only afford to pay $30,000 each quarter. What should be total face value of your bonds then? (c) (10 points) Suppose that you can instead raise money in a different region with a lower tax rate on interest income. Because of lower taxes, YTM on your bonds will be lower by 2 percentage points in the different region. Assuming that you are still going to issue the same bonds as in part (b) (quarterly coupon of $30,000, maturity of 10 years, same face value), how much more will you be able to raise? Do you think that this is a good idea, given that it will cost you $150,000 to hire financial consultants and lawyers to issue bonds in the different region