2208_FIN381_03F Information The LMN Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value $70 coupon P Flag constion payments, maturing in 8 years, and trades today at $1.030,44 with 90,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value $300.00 coupon payments, maturing in 8 years, and trades today at $9,395 29 with 20,000 bonds outstanding Bond 3 is a quarterly bond with a $1,000 par value, $17.75 coupon payments, maturing in 8 years and trades at $1,082.74 with 70,000 bonds outstanding. LMN has 1,800,000 shares of preferred stock outstanding paying a dividend of $6.70 with a share price of $51.50. LMN has 71 million shares of common stock outstanding with a reported beta of 1.10 that is trading at $19.40 and pays a dividend of $2 20 annually and expected sustained dividend growth of 3.10% for the foreseeable future. The expected return on the market is 9.10% and the risk free rate is 3.10% When measuring the expected return on equity, you decide to weight the return generated by CAPM at 80's and the Continuous Dividend Growth (Gordon Growth) model at 20%, The L.MN Corporation in taxed at the 21% level Question 1 What is the yield-to-maturity of Bond 2? Answer ved Points out of P Flag question Select one: a. Less than 3 b Between 3 and 4% e Between 4% and 5% d. Between 5% and 6% e Greater than 6