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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis.

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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation's balance sheet as of today, January 1, 2005, is as follows: The bonds have 4 percent coupon rate, payable semiannually, and a per value of $1,000. They mature on January 1, 2015. The yield to maturity is 12 percent, so the bonds now sell below par. What is the current market value of the firm's debt

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