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The MillerCorp would like to acquire its competitor, the ModiglianiCorp. To pay for the acquisition expenses, it is intending to issue bonds that pay semiannual

The MillerCorp would like to acquire its competitor, the ModiglianiCorp. To pay for the acquisition expenses, it is intending to issue bonds that pay semiannual coupon payments. These corporate bonds would have a coupon rate of 8 percent and their YTM would be 6 percent. The bonds would have 18 years left until their maturity. Interestingly, the ModiglianiCorp has the same plan. It wants to take a loan to acquire its competitor, the MillerCorp, by issuing corporate bonds. In fact, it already recently sold bonds for this purpose. Like the MillerCorp's bonds, its bonds pay coupons twice a year, have a 6 percent coupon rate, have a YTM of 8 percent, and they mature 18 years from

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