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Suppose a company is having financial difficulties. It issues a 10-year bond that offers a coupon rate of 12%. It sells for $900. Investors/lenders allow
Suppose a company is having financial difficulties. It issues a 10-year bond that offers a coupon rate of 12%. It sells for $900. Investors/lenders allow the firm to reduce coupon payments on that bond to one-half of the originally promised coupon amount. The company can handle these lower payments. Find the (a) stated/promised YTM and (b) expected YTM.
Show formulas in excel, please!!
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