UF S.A. wants to issue bonds maturing in 10 years to raise 5M . It is presented with two alternatives: i) Make a public issue at par with a coupon rate of 9%. The underwriter margin is 1.5% of the issuance price and there are no other administrative or legal costs. i) Make a private issue with a coupon rate of 9.125%. The issuance costs are 10.000. Questions: a) What is the present value of the coupons in the public and in the private offering? b) What are the total costs for UF S.A. for each alternative? c) What is the best option for UF S.A.? Note: use 9% as a discount rate in both cases