The Harding Corporation has $$52$ million of bonds outstanding that were issued at a coupon rate of $13\mathrm{.}25$ percent seven years ago. Interest rates have fallen to $11\mathrm{.}6$ 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 $18$ ye to maturity. The Harding Corporation has a tax rate of $22\mathrm{.}5$ percent. The underwriting cost on the old issue was $4\mathrm{.}5$ percent of the to bond value. The underwriting cost on the new issue will be $1\mathrm{.}8$ percent of the total bond value. The original bond indenture containe 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 $3$ decim 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. not round intermediate calculations. Round the final answer to nearest whole dollar. Negative amount should be indicated by a minus sign.$)$

Net present value

$