You need to choose between making a public offering and arranging a private placement. In each case, the issue involves $$9\mathrm{.}5$ million face value of $10-$year debt. You have the following data for each:

A public issue: The interest rate on the debt would be $8\mathrm{.}25\%,$ and the debt would be issued at face value. The underwriting spread would be $1\mathrm{.}15\%,$ and other expenses would be $$75,000.$

A private placement: The interest rate on the private placement would be $8\mathrm{.}6\%,$ but the total issuing expenses would be only $$25,000.$

a$-1.$ Calculate the net proceeds from public issue.

Note: Enter your answer in dollars not millions of dollars.

a$-2.$ Calculate the net proceeds from private placement.

Note: Enter your answer in dollars not millions of dollars.

b$-1.$ Calculate the Present Value of the extra interest on the private placement.

Note: Do not round intermediate calculations. Enter your answer in dollars not millions of dollars. Round your answer to the nearest whole dollar amount.

b$-2.$ Other things being equal, which is the better deal?