Environ Systems is a firm that specializes in cleaning environmental damage (waste disposal) and specialty...
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Environ Systems is a firm that specializes in cleaning environmental damage waste disposal and specialty chemicals. As part of its expansionary plans, it has made a large issuance of year corporate bonds, with a face value of $ each and an annual coupon rate of
a Assuming a discount rate of calculate the value of the bond.
b Environ got into deep financial troubles and defaulted on ie: stopped paying its bonds in year During that year, Environ negotiated with bondholders on a debt restructuring deal which included extending the maturity of the bond extra years ie: from years previously to years a full relief from coupon payments in years and a payment of coupons at a reduced rate of per annum from years to year and a repayment of of the face value in year Under such conditions and assuming a discount rate of what would the value of the bond be What would the bondholder's profitloss be relative to the face value of the bond?
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