The Harding Corporation has $$51\mathrm{.}2$ million of bonds outstanding that were issued at a coupon rate of $12\mathrm{.}75$ percent seven years ago.

Interest rates have fallen to $11\mathrm{.}1$ percent. 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 $28\mathrm{.}0$ percent. The underwriting cost on the old issue was $3\mathrm{.}7$ percent of the total bond value. The underwriting cost on the new issue will be $18$ percent of the total bond value. The original bond indenture contained a five$-$year protection against a call, with an $8$ percent call premium starting in the sixth year and scheduled to decline by one$-$half percent each year thereafter $($Consider the bond to be seven years old for purposes of computing the premium$).$ Use Appendix D

a$.$ Compute the discount rate. $($Round the final answer to $2$ decimal places.$)$

Discount rate

$\%$

b$.$ Calculate the present value of total outflows. $($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 dollar.$)$

Total outflows

c$.$ 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 dollar.$)$

Total inflows

d$.$ Calculate the net present value. $($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 dollar. Negative amount should be indicated by a minus sign.$)$