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What is the market value of debt for Bond 3? sation 8_FIN381_03F The LMN Corporation has three bond issuances outstanding, Bond 1 is an annual

What is the market value of debt for Bond 3? image text in transcribed
sation 8_FIN381_03F The LMN Corporation has three bond issuances outstanding, Bond 1 is an annual bond with a $1,000 par value, $70 coupon question 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 L.MN Corporation is taxed at the 21% level

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