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Use the following balance sheet information to answer. All assets and liabilities are currently priced at par and pay interest annually Assets (S millions) Liabilities

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Use the following balance sheet information to answer. All assets and liabilities are currently priced at par and pay interest annually Assets (S millions) Liabilities (S millions) 1-year 7 percent coupon bonds S60 -year 5 percent interest rate CD S50 2-year 6 percent interest rate CD Equity 10-year 12 percent loan $40 $40 S10 $100 $100

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