Question: Sludge Corporation has two bonds outstanding, each with a facevalue of $2.65 million. Bond A is a senior bond; bond B issubordinated. Sludge has suffered

Sludge Corporation has two bonds outstanding, each with a facevalue of $2.65 million. Bond A is a senior bond; bond B issubordinated. Sludge has suffered a severe downturn in demand, andits assets 2 answers

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