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Slush Corporation has two bonds outstanding, each with a face value of $ 2 . 3 million. Bond A is secured on the company s
Slush Corporation has two bonds outstanding, each with a face value of $ million. Bond A is secured on the companys head office building; bond B is unsecured. Slush has suffered a severe downturn in demand. Its head office building is worth $ million, but its remaining assets are now worth only $ million. If the company defaults, what payoff can the holders of bond B expect?
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