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b. Suppose that investors believe that Castles can make good on the promised coupon payments but that the company will go bankrupt when the bond
b.Suppose that investors believe that Castles can make good on the promised coupon payments but that the company will go bankrupt when the bond matures and the principal comes due. The expectation is that investors will receive only 85% of face value at maturity. If they buy the bond today, what yield to maturity do theyexpectto receive?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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