Question: Show your work and ALL calculations 1. When Super Corp filed for bankruptcy, its balance sheet capital structure (in millions) was: $70 Senior Secured, $120

Show your work and ALL calculations

1. When Super Corp filed for bankruptcy, its balance sheet capital structure (in millions) was: $70 Senior Secured, $120 Senior Unsecured, $50 Subordinated, $30 Junior Subordinated, $40 Preferred Stock, and Common Equity of $150. If the actual total market value of its assets was $230 million, how much would be paid to each level of the capital structure?

2. Netflix has an outstanding zero-coupon bond with 7 years to maturity that has a market rate of 3.2%/year. What is its market price now?

3. Uber's zero-coupon bond is trading at 64 and has exactly 8 years to maturity. What is its current yield to maturity? (Your answer should be a % carried to 2 places.)

4. P&G's outstanding bullet bond will mature in 2035 and carries a coupon rate of 2.8%/year payable semi-annually.

a. How much is each coupon payment?

b. Given a current market price of 101.3, is the market rate > or < 2.8%?

5. You bought a bullet bond issued by Easy-Tech Corp that has a coupon rate of 4%/year paid semi-annually and has exactly 3 years to maturity.

a. Draw a timeline.

b. If the current market rate is 3%/year what is the bond's current market price?

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1 The total market value of the assets is 230 million This is less than the total capital structure of 460 million which means not all debt obligation... View full answer

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