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Assume that an investor in the debt of a firm paid 752 for one bond (face value = $1000) with a coupon rate of 0.12.
Assume that an investor in the debt of a firm paid 752 for one bond (face value = $1000) with a coupon rate of 0.12. This rate is stated as a decimal. In one year, the firm underwent a restructuring whereby this debtholder received 143 per bond. What is the cash on cash return for this investor? State as a decimal, and round to the nearest 2 decimal places.
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