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I need help with questions 1 and 2. Thanks. 1381_03F The LMN Corporation has three bond issuances outstanding. Bond 1 is an annual bond with

I need help with questions 1 and 2. Thanks. image text in transcribed
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1381_03F The LMN Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $70 coupon 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 S2 20 annually and expected sustained dividend growth of 3.10% for the foreseeable future. The expected teturn 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% and the Continuous Dividend Growth (Gordon Growth) model at 20%. The LMN Corporation is taxed at the 21% level. What is the yield-to-maturity of Bond 2? Select one a. Less than 3% b. Between 3% and 4% c. Between 4% and 5% d. Between 5% and 6% e. Greater than 6% What is the market value of debt for Bond 3? Select one a. Less than $10,000,000 b. Between $10,000,000 and $30,000,000 7:56 AM 12/11/2020 What is the yield-to-maturity of Bond 2? Question 1 Not yet answered Points out of 1 P Flag question Select one: a. Less than 3% Ob. Between 3% and 4% c. Between 4% and 5% d. Between 5% and 6% e. Greater than 6% What is the market value of debt for Bond 3? Question 2 Not yet answered Points out of 1 Flag question Select one: a. Less than $10,000,000 b. Between $10,000,000 and $30,000,000 c. Between $30,000,000 and $60,000,000 d. Between $60,000,000 and $100,000,000 e. Greater than $100,000,000 O IL

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