In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. KJM Corporation's balance sheet (book values) as of today is as follows: The bonds have a 7.9% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 20 years from today. The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt? Do not round your intermediate calculations. a. $19,157,769 b. $20,046,704 c. $19,204,989 d. $20,969,623 e. $19,116,657 Kay Corporation's 5 -year bonds yield 6.80% and 5 -year T-bonds yield 4.70%. The real risk-free rate is r=3.10%, the inflation premium for 5 -year bonds is IP=1.20%, the default risk premium for Kay's bonds is DRP =1.30% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP =(t1)0.1%, where t= number of years to maturity. What is the liquidity premium (LP) on Kay's bonds? a. 0.80% b. 1.20% c. 1.70% d. 2.10% e. 1.30%