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10) Assume that IBM and Hammond Utilities Inc. both have bonds outstanding with 10 years left to maturity, both have a coupon rate of 3%,

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10) Assume that IBM and Hammond Utilities Inc. both have bonds outstanding with 10 years left to maturity, both have a coupon rate of 3%, and both have a par of $1,000. Assume that IBM is having significant financial problems and that Hammond Utilities Inc. is a very stable and growing company. Must they sell for the same bond price? In other words, will they both have the same bond value? Ayes B. no

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