the bonds have a 8.1% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

Long-term debt (bonds, at par)$10,000,000

Preferred stock 2,000,000

Common stock ($10 par)10,000,000

Retained earnings 4,000,000

Total debt and equity$26,000,000