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Bonds issued by the Black Panther Company mature in 1 years time with a maturity value of $110 . There is no cash flow during
Bonds issued by the Black Panther Company mature in 1 years time with a maturity value of $110. There is no cash flow during the year. Investors believe that there is a 90 percent chance that the full payment of $110 will be made and 10 percent chance that no payment will be made. Calculate the price of Black Panthers bond (assuming that the required rate of return of 10%) and the yield to maturity of the bonds?
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