A 10-year bond of a firm in severe financial distress has a coupon rate of 12% and sells for $900.
A 10-year bond of a firm in severe financial distress has a coupon rate of 12% and sells for $900. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the originally contracted amount. The firm can handle these […]