Question: 1 . Tayor has one long - term debt security outstanding with a coupon rate of 7 percent. It is a debenture issue maturing 1

1. Tayor has one long-term debt security outstanding with a coupon rate of 7 percent. It is a debenture issue maturing 10 years, and interest is paid semiannually. Determine the debentures current market value assuming that all principals will be paid in 10 years. Assume also that the bonds current YTM is 9 percent.

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