on Support This course Kodi FIN381_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 $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% and the Continuous Dividend Growth (Gordon Growth) model at 20%. The LMN Corporation is taxed at the 21% level. What is the yield-tomaturity of Bond 2? ered 1 Select one: a. Less than 3% b. Between 3% and 4% stion c. Between 4% and 5% d. Between 5% and 6% O e. Greater than 6% What is the market value of debt for Bond 3? wered of 1 Jestion 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 e. Greater than $100,000,000 ses Support This course) What is the Cost of Debt for the LMN corporation (do not round until the final answer)? ered 3 Select one: a Less than 4,5% b. Between 4.5% and 5,5% stion c. Between 5.5% and 6.5% d. Between 6.5% and 7.5% e. Greater than 7.5% What is the cost of Equity for the LMN Corporation (do not round until the final answer)? wered of 1 Destion Select one: a. Less than 7% b. Between 7% and 8% c. Between 8% and 9% d. Between 9% and 10% e Greater than 10% 5 nswered What is LMN Corporation's Weight of Preferred (do not round until the final answer)? ut of Question Select one: a Less than 6% b. Between 6% and 10% c. Between 10% and 14% d. Between 14% and 18% e Greater than 18% MacBook Air