The Harding Corporation has $517 million of bonds outstanding that were issued at a coupon rate of 11.75 percent seven years ago. interest rates have fallen to 10.3 percent. Pregton Ater, the vice-president of finance, does not expect rates to fall ary further. Thebonds have 18 years left to maturity, and Preston would like to refund the bonds with a hew issue of equal amount also having 18 years to maturity. The Harding Corporation has a tax rate of 22.5 percent. The underwiting cost on the old issue was 4.2 percent of the total bond value. The underwriting cost on the new issue wili 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 decine by one hall percent each year thereafter (Consider the bond to be seven years old for purposes of computing the premlum). Use ARgendix. D. a. Compute the discount rate. (Round the final answer to 2 decimal places.) Discount rate b. Calculate the present value of total outlows. (Enter the onsvhrs in whole dollars, not in millions. Round "PV Factor" to 3 decimal ploces. Do not round intermediate calculations. Round the final answer to nearest whole doller.) Total outflows $ c. Calculate the present value of total Inflows. (Enter the onswers in whole dollars, not in millions. Round "PV Foctor" to 3 docimal places. Do not round intermediate calculotions. Round the finol answer to neorest 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 colculotions. Round the final onswer to nearest whole dollor. Negotive amount should be indicated by a minus sign.) Net present value e. Should the Harding Corporation refund the old issue