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Kidder corporations balance sheet shoes an historic book value for long term debt of 23,500,000. The...

Kidder corporations balance sheet shoes an historic book value for long term debt of 23,500,000. The bonds have a 6.4% coupon rate, payable semiannually, and a par value of $1000. They mature exactly 10 years from today. The yield to maturity is 9.70% so the bond now sell below par, what is the current market value of the firms debt?

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jeff jeffy answered 2 years ago
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Kidder Corporations balance sheet shows an historical book value for long term debt ( bonds, at...
Kidder Corporations balance sheet shows an historical book value for long term debt ( bonds, at par) of $23,500,000. The bonds have a 6.4% coupon rate, payable semiannually and a par value of 1.000. They mature exactly 10 years from today. The yield to maturity is 9.20%, so the bonds now sell below par. What is the current market value of the firms debt? Please round your answer 2 decimal places.
Balance Sheet Data                Long-Term Debt               80,000,000       &nb
Balance Sheet Data                Long-Term Debt               80,000,000                Preferred Stock                20,000,000                Common Equity                20,000,000 Number of shares of Common                 1,500,000                         Price per share Common             $42 Number of shares of Preferred                     150,000                               Price per share Preferred            $108 Number of 8% Coupon 25-year Bonds          40,000               Price of 8% 25-year Bonds   $1075 Number of 6% Coupon 15-year Bonds          40,200                           Price of 6% 15-year Bonds   $920 Forecasted Dividend on Common (D1)             $3.30                           Dividend Rate on Preferred           ...
Balance Sheet Data                Long-Term Debt               80,000,000       &nb
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Balance Sheet Data                Long-Term Debt               80,000,000       &nb
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