Total Market Value of Equity = Price per Share * Number of Shares outstanding

Total market value of equity = $40 * 4,000,000 =$160,000,000

Step - 3: To find Market value of Debt

Total market value of debt = Price per bond * Number of bonds outstanding

Total Market Value of debt = 1134.370707 * 190,000 =$215,530,434.4

Step - 4: To find Market value of Firm

Market value of Firm = Market value of Equity + Market value of Debt

Market value of Firm = $160,000,000 + 215530434.4

Therefore Market value of Firm =375,530,434.4

Face Value = 1000

Coupon Interest = 9% * 1000 = 90 per year or 45 per semiannual period

YTM = 7.3% per annum or3.65% per semiannual period

Years for maturity = 12 years or 24 semiannual periods

Current Price of the Bond = Present value of interest payments + Present value of the face value.

Current Price of the Bond = 45 * [1 - (1+3.65%)-24] / 3.65% + 1000 * (1+3.65%)-24

Current Price of the Bond = 45 * [1 - 0.422996375] / 3.65% + 1000 * 0.422996375

Current Price of the Bond = 45 * 15.80831849 + 1000 * 0.422996375

Current Price of the Bond = 711.3743321 + 422.996375

Therefore Current Price of the Bond =1134.370707