Kidder corporations balance sheet shows an historical book value for long-term debt (bonds, at par) of $23,500,000. The bonds have an 7.7% coupon rate, payable semiannually, and a par value of $1000. They mature exactly 10 years from today. the yield to maturity is 12% so the bonds now sell below par. What is the current market value of the firm's debt?

Answer rating: 100% (QA)

Given Par 1000 Total BV of debt 23500000 PMT 1000 x 7 X o5 385 3D N 10X 22... View the full answer