LMN Company is planning to issue bonds to finance its capital expenditure projects. The company intends to issue $10 million in bonds with a coupon rate of 5% and a maturity period of 10 years. Using the present value of annuity formula, calculate the annual interest payments and total interest expense over the life of the bond issue. Additionally, assess the impact of issuing bonds on LMN Company's leverage, cost of capital, and financial flexibility, and discuss the advantages and disadvantages of debt financing compared to equity financing in funding the company's growth initiatives.