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please show step by step how you got the answer using excel YMMV Inc. issues a bond with a face value of $85,000,000 with a
please show step by step how you got the answer using excel
YMMV Inc. issues a bond with a face value of $85,000,000 with a coupon rate of 3.750% maturing in 26 years. The current yield rate is r(365) = 8.500%. TFC will secure the bond by making annual deposits into a sinking fund paying 1.750% compounded monthly. YMMV defaults on the bond after 24 years (just after making their coupon payment, and sinking fund deposit). The bondholders receive the balance in the sinking fund. How much money do they lose? a. $484,216.29. O b. $430,414.48. C. $443,864.93. d. $448,348.42. e. $511,117.20. Certainty @ : OC=1 (Unsure: 67%) OC=3 (Quite sure: >80%)Step by Step Solution
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