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You are the owner of 100 bonds issued by Carters, Ltd. These bonds have 4 years remaining to maturity, a coupon rate of 7 percent,

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You are the owner of 100 bonds issued by Carters, Ltd. These bonds have 4 years remaining to maturity, a coupon rate of 7 percent, semiannual coupon payments, and a par value of $1,000. Unfortunately, Carters is on the brink of bankruptcy, and the creditors, including yourself, have agreed to a postponement of the next 4 interest payments (otherwise, the next interest payment would have been due six months from today). The remaining interest payments (.e., Interest payments for Years 3 and 4) will be made as scheduled. The postponed payments will accrue interest at an annual rate of 10 percent (compounded semiannually), and they will then be paid as a lump sum at maturity 4 years from now. The required rate of return on these bonds, considering their substantial risk, is 22 percent. If an investor purchases one of the bonds today, what is the total cash flow the investor should expect to receive when tu bond matures (do not include the coupon payment that will be made at the time the bond matures)? What is the current value of each bond

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