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Suppose you borrow to finance 25% of the purchase of 100 unit of defaultable zero coupon bonds with a current price of $840 per unit.
Suppose you borrow to finance 25% of the purchase of 100 unit of defaultable zero coupon bonds with a current price of $840 per unit. If the maintenance margin is 30%, one week later at what bond price will you receive a margin call? (Ignore interest on the loan)
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