Read the closing case Financing East Coast Yachts Expansion Plans with a Bond Issue in chapter 5 (see below) of textbook . (4th ed.) by Ross, S., Westerfield, R., Jaffe, J., and Jordan, B. (2014), and answer the four questions posed on this sheet.The firm is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM in either case is expected to be 5.5% per annum. The coupon bond would have a 5.5% per annum coupon payable semiannually. The companys tax rate is 35%.CLOSING CASEFINANCING EAST COAST YACHTS EXPANSION PLANS WITH A BOND ISSUEAfter Dans EFN analysis for East Coast Yachts, Larissa has decided to expand the companys operations. She has asked Dan to enlist an underwriter to help sell $45 million in new 30-year bonds to finance new construction. Dan has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isnt clear on how each feature would affect the coupon rate of the bond issue.Dan is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM on either bond issue will be 5.5 percent. The coupon bond would have a 5.5 percent coupon rate. The companys tax rate is 35 percent.Attachments:Read the closing case Financing East Coast Yachts Expansion Plans with a Bond Issue in chapter 5 (see below) of textbook . (4th ed.) by Ross, S., Westerfield, R., Jaffe, J., and Jordan, B. (2014), and answer the four questions posed on this sheet.The firm is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM in either case is expected to be 5.5% per annum. The coupon bond would have a 5.5% per annum coupon payable semiannually. The companys tax rate is 35%.CLOSING CASEFINANCING EAST COAST YACHTS EXPANSION PLANS WITH A BOND ISSUEAfter Dans EFN analysis for East Coast Yachts, Larissa has decided to expand the companys operations. She has asked Dan to enlist an underwriter to help sell $45 million in new 30-year bonds to finance new construction. Dan has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isnt clear on how each feature would affect the coupon rate of the bond issue.Dan is also considering whether to issue coupon-bearing bonds or zero coupon bonds. The YTM on either bond issue will be 5.5 percent. The coupon bond would have a 5.5 percent coupon rate. The companys tax rate is 35 percent.