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HELP PLS ASAP Problem 13-22 Expected Cost of Debt (LO3) Risky Business' outstanding debt is 7% bonds, paying interest annually and maturing one year from

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Problem 13-22 Expected Cost of Debt (LO3) Risky Business' outstanding debt is 7% bonds, paying interest annually and maturing one year from today. The bonds currently sell for $590 per $1,000 par value. The company is experiencing severe financial difficulties and analysts predict that there is a 57% probability that the company will go bankrupt within the year. If bankruptcy occurs, bondholders are predicted to recelve only 25% of the promised cash flow (principal plus coupon). a. What is the current promised yleid to maturity (assuming that bondholders receive all promised)? (Round your answer to 1 decimal piace. Use minus sign to enter negative values, if any.) Current yiedd to maturity b. What is the current yield to maturity assuming that default occurs? (Round your answer to 1 decimal place. Use minus sign to enter negatlve values, If any.) Current yleld to maturity c. What is the current expected yleid to maturity? (Round your answer to 2 decimal places. Use minus sign to enter negative values. If any.)

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