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The Robinson Corporation has $29 mililion of bonds outstanding that were issued at a coupon rate of 11.150 percent seven years ago. Interest rates have

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The Robinson Corporation has $29 mililion of bonds outstanding that were issued at a coupon rate of 11.150 percent seven years ago. Interest rates have fallen to 10.650 percent. Mr. Brooks, the Vice- President of Finance, does not expect rates to fall any further. The bonds have 17 years left to maturity, and Mr. Brooks would like to refund the bonds with a new issue of equal amount also having 17 years to maturity. The Robinson Corporation has a tax rate of 30 percent. The underwriting cost on the old issue was 2.90 percent of the total bond value. The underwidng cost on the new issue will be 1.90 percent of the total bond value. The original bond indenture contained a five-year protection against a call, with a call premium of 7 percent starting in the sixth year and scheduled to decine by one half percent each year thereafter. (Consider the bond to be seven years old for purposes of computing the premium) Use Appendlx D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Assume the discount rate is equal to the ahertax cost of new debt rounded up to the nearest whole percent (eg. 405 percent should be rounded up to 5 percent a. Compute the discount rabe. (Do not round Intermediate calculations. Input your answer as a percent rounded up to the nearest whole percent.) b. Calculate the present value of total outflows. (Do not round intermediate calculations and round your answer to 2 decimal places.) of total outflows c. Calculate the present value of total inflows. (Do not round intermediate calculations and round your answer to 2 decimal places.) of total infiows should be indicated by a minus sign Do not round intermediate calculations and round your answer to 2 decimal places

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