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Sam Co. currently has 8.5% coupon bonds on the market that sell for $1130.50, make semiannual payments, have a $1,000 par value, and mature in

  1. Sam Co. currently has 8.5% coupon bonds on the market that sell for $1130.50, make semiannual payments, have a $1,000 par value, and mature in 15 years. . What is the YTM on the bonds? b. Assume Sam Co. starts to run into cash flow problems because of supply chain issues. This makes the company and its bonds more risky. What do you expect will happen to the (a) price and (b) yield to maturity of the bonds when the market realizes this new risk?

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