The Harding Corporation has $507 millon of bonds outstanding that were issued at a coupon rate of 102.5 percent seven years ago Interest rates have fallen to 9 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 tefund the bonds with a new issue of equal amount also having. 18 years to maturity. The Harding Corporation has a tixc rate of 30 percent. The underwiting cost on the old issue was 3.2 percent of the total bond value. The underwiting cost on the new issue wal be 1.8 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 Apoendix D. a. Compute the discount rate. Discount rate b. Calculate the present value of total outllows (Enter the answers in whole dollars, not in millions. Round "pV Factor" to 3 decimal places. Do not round intermediate colculations. Pound the finel answer to nearest whole dollor.) fotal ongllows c. Calculate the present value of total inflows. (Enter the answers in whole doliers, not in millions. Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Pound the finol antwer to nearest whole doller.) Total inflows d. Calcuiate the net present value. (Einter the onswers in whole dolitors, not in millions, Round "py Factor" to 3 decimal ploces. Do. not round intermediate calculations. Round the final answer to neorest whole dollse. Negotive amount should be indicated by a minus sign.). places. Do not round intermediate calculations. Round the final answer to nearest whole dollor.) Total inflows d. Calculate the net present value. (Enter the answers in whole dollars, not in millions. Round "PV Factor" to 3 decimol ploces. Do not round intermediate colculations. Pound the final onswer to neorest whole dollor. Negotive amount should be indicated by 0 minus sign.) Net present value e. Should the Harding Corporation refund the old issue? No Yes