Transistor Group issued $25-$year bonds $10$ years ago at par, when the yield$-$to$-$maturity on the issue was $9\mathrm{.}0$ percent. Since then, the yield$-$to$-$maturity has declined to $7\mathrm{.}0$ and the company is considering refunding the $$8$ million outstanding. They would replace it with an issue of equal size, for the number of years remaining of the original issue.

The company would have to pay a call premium of $6\mathrm{.}0$ percent on the old issue and underwriting cost on the new $$8$ million issue is $$300,000.$ The company is in a $40\mathrm{.}0$ percent tax bracket, and there will be an overlap period of $1$ month. Treasury Bills currently yield $3\mathrm{.}0$ percent per year.

$121$

Required:

Complete the following table by entering the present value for each the relevant cash flows and