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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figure from historical book values to

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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figure from historical book values to market values. KJM Corporation's balance sheet (book value) as of today is as follows: The bonds have a 7.0% coupon rate, payable semiannually, and a par value of $1.000. They mature exactly 10 years from today. The yield to maturity is 10%, so the bonds now sell below par. What is the current market value of the firm's debt? a. $19, 107, 145 b. $17, 883, 320 C. $17, 436, 237 d. $7, 898, 650

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