Problem 16-20 (Modified) The Harding Corporation mulon of bonds outstanding that were issued at a coupon rate of 1225 percent seven years ago Interest rates have fallen to 11 EP. Preston Alter the vice-president of finance, does not expect rates to fall any further. The bonds have 18 years left to maturity and Preston would like to refund the bonds with a new issue of equal amount also having 18 years to maturity. The Harding Corporation has a tax rate of 25 percent. The underwriting cost on the old issue was 4.3 percent of the total bond value. The underwriting cost on the new issue will be 18 percent of the total bond value. The premium for calling the band early Is 75 percent. Use Boend xD a. Compute the discount rate (Round the final answer to 2 decimal places.) Discount rate b. Calculate the present value of total outfiows. (Enter the answers in whole dollars, not in millions. Round "PV Foctor" to 3 decimal places. Do not round Intermediate calculations. Round the final answer to nearest whole dollar) Total outflows e. Calculate the present value of total inflows. (Enter the answers in whole dollars, not in millions, Round "PV Factor" to 3 decimal places. Do not round Intermediate calculations. Round the final answer to nearest whole doller.) Total Intlows SEF d. Calculate the net present value (Enter the answers in whole dollars, not in littont Round "PV Factor" to 3 decimal places. Do not round Intermediate calculations. Pound the finel answer to nearest whole dollar Negative amount should be indicated by a mission) Net present value e. Should the Harding Corporation refund me old issue