Table 2: Bond Term to Maturity years) Coupon rate (% p.a.) A 2 10 B 3 8 C 4 12 a. The face value of each of the three bonds in the Table 2 is $1 000 and the current yield is 9 per cent per annum. All the bonds pay annual coupons. Calculate current price of each bond. b. There are two companies in the paper industry: Upward Ltd and Lever Ltd. Both are equivalent except their capital structure. Both companies produce net operating cash flows (NCF) of $12 000 a year. The market value of Lever Ltd is V L = $110 000 (which comprises debt D L = $30 000 and equity E L = $80 000). The market value of the Upward Ltd, is V U = $100 000 (which, by definition, comprises only equity E U = $100 000). The interest rate for both companies (and all investors) is 4 percent per annum. Consider an investor, Bernard, who owns 1 per cent of the shares in Lever Ltd. i. State the Modigliani-Miller proposition 1. ii. What is the market value of Bernards shareholding? iii. Determine Bernards return and risk.