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YMMV Inc. issues a bond with a face value of $40,000,000 with a coupon rate of 10.000% maturing in 10 years. The current yield rate

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YMMV Inc. issues a bond with a face value of $40,000,000 with a coupon rate of 10.000% maturing in 10 years. The current yield rate is r(12) = 8.000%. TFC will secure the bond by making quarterly deposits into a sinking fund paying 3.750% compounded semi-annually. YMMV defaults on the bond after 7 years (just after making their coupon payment, and sinking fund deposit). The bondholders receive the balance in the sinking fund. How much money do they lose? O a. $13,525,632.76. O b. $15,546,704.32. O c. $12,281,896.41. O d. $14,924,836.15. O e. $14,302,967.97

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