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Saw these two questions for a thumbs up The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a

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The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 30% chance that Loughran will default on these bonds. If Loughran does default, investors expect to receive 25% of their promised payoff at maturity (eg. 50.25 cents per dollar they are promised) If investors require a 6.0% expected return on their investment in these bands, which of the following statements most accurately describes the price (per $100 face value) and current YTM of these bonds? O A. This bond is priced at $52.31 per $100 face value with a YTM of 13.8% OB. This bond is priced at $77.50 per 5100 face value with a YTM of 5.2% OC. Thin bond is priced at $7473 per 5100 face value with a YTM of 6.0% OD. This bond is priced at $57 91 per 100 face value with a YTM of 115% O E. Thin bond is priced at $57.91 per $100 face value with a YTM of 6.0% Which of the following bonds is trading at a premium? O A. a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semiannually OB. a two-year bond with a $50,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid monthly C. a ten-year bond with a $4.000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semiannually OD. a five-year bond with a $2,000 face value whose yield to maturity is 7.0% and coupon rate is 72% APR paid semiannually

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