Question: I need help with problems 3 and 4. Thanks. The LMN Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a

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 tetuin on the market is 9.10% and the risk-free late 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-to-maturity of Bond 2? vered Select one a. Less than 3% b Between 39 and 4% c. Between 4% and 5% d. Between 5% and 6% e Greater than 6 757 AM 12/1/2020 on 2 What is the market value of debt for Bond 37 i Question 3 What is the cost of Debt for the LMN Corporation (do not round until the final answer)? Not yet answered Points out of 1 P Flag question Select one: O a. Less than 4.5% b. Between 4.5% and 5.5% c. Between 5.5% and 6.5% O 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)? Question 4 Not yet answered Points out of 1 P Flag question Select one: O a. Less than 7% b. Between 7% and 8% c. Between 8% and 9% d. Between 9% and 10% e. Greater than 10% Question 5 What is LMN Corporation's Weight of Preferred (do not round until the final answer)? Not yet answered Select one
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