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The Loughran Corporation has l ed zero-coupon corporate bonds with a five year maturity Investors believe there is a 20% chance that will default on

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The Loughran Corporation has l ed zero-coupon corporate bonds with a five year maturity Investors believe there is a 20% chance that will default on the bordea d os de expect to 25% of the promised peyot e . 30 25 cos por other promised) investors require a 70% expected retum on their investment in these bonds, which of the following statements most scoate describes the price (per 100 face value and current YTM of these bones? OA. This bond is priced at $60.60 per $100 face value with a YT of 70% OB. This bond is priced at $85.00 per $100 face value with YTM of 3.3% Oc. This bond is priced at $57.04 per $100 face value with a YTM of 11.9% OD. This bond is priced at $60.60 per $100 face value with YTM of 10,5% OL This bond is priced at $10 per $100 face with a uf 70%

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