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Memphic Memphic
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6 years ago
Assume that in the event of default, 20% of the value of MI's assets will be lost in bankruptcy costs and suppose that MI has zero-coupon debt with a $125 million face value due next year.  The yield to maturity of MI's debt is closest to:
A) 13.75%
B) 5.00%
C) 19.25%
D) 12.50%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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anicidanicid
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6 years ago
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Memphic Author
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6 years ago
Thanks
KaylenePig
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Yesterday
Thank you, thank you, thank you!
wyq2651
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2 hours ago
Thanks for your help!!
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