SHOW WORK, NEED ASAP !! IN 10 MIN

XYZ Corporation needs to raise $1.60 million of debt on a 20-year issue. If it places the bonds privately, the interest rate will be 10% and $20,000 in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 9%, $120,000 in out-of-pocket costs, and a 2% underwriting spread will be incurred. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 20-year period, at which time it will be repaid. Assume the stated discount rate is 12 percent annually (6 percent semiannually). You may disregard taxes in your analysis. Should XYZ, Inc. choose the private placement or public offering? Must show work of your analysis to receive credit. (10 points)