17

Kidder Corporation's balance sheet shows an historical book value for long-term debt (bonds, at pan) of $23,500,000. The bonds have an 6,49 coupon rate, payable semiannually, and a par value of $1.000. They mature exactly 10 vears from today. The vield to maturity is 9.95%, so the bonds now sell below par. What is the current market value of the firm's debt? Hint: Calculate the price of the bonds, Tand multiply by number of bonds (book value / 1.000 ) to calculate market value. Your answer should be between 17,746,000 and 20,054,000, with no special characters