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Debbie's and Scottrick's have a similar credit rating and the bonds trade and similar values. The average interest rate on their bonds is 4%. Scottrick's

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Debbie's and Scottrick's have a similar credit rating and the bonds trade and similar values. The average interest rate on their bonds is 4%. Scottrick's issues new bonds paying a 6% coupon. These bond will likely: sell for par value sell for a discount to par value sell for a premium to par value bankrupt Debbie's bankrupt Scottrick's

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