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The bonds of Columbia Gas paid no interest in 1993 because the firm had declared bankruptcy. One issue of these bonds, the 814 percent coupon
The bonds of Columbia Gas paid no interest in 1993 because the firm had declared bankruptcy. One issue of these bonds, the 814 percent coupon bonds due in 1996, was selling at 109 percent of par value, or for approximately $1,090. Why would someone pay $1,090 for the bonds of a bankrupt firm?
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