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Grumenon Corporation has lasued zero-coupon corporate bonds weth a five-year maturity (assume $100 tace value bond). itrvestors believe there is a 10% chance that Gnummon

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Grumenon Corporation has lasued zero-coupon corporate bonds weth a five-year maturity (assume $100 tace value bond). itrvestors believe there is a 10% chance that Gnummon wil defaut on these boeds. If Grummon does delault, investors expect to receive only 65 cents per dollar they ate owed. If inveslons require a 6% expected return on their investment in these bonds, what will be the price and yield to maturity on these bonds? Note: Assume annual compounding. What wa be the price of these bonde? The price of these tonds is 1 (Round to the noarest cent)

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