N recent times ohio hospitals filed for bankruptcy. the, Ask an Expert

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problem: In recent times, Ohio Hospitals filed for bankruptcy. The firm was reorganized as American Hospitals, and the court permitted a new indenture on an outstanding bond issue to be put into effect. The issue has ten years to maturity and coupon rate of 10% [I = $100] paid yearly. The new agreement allows the firm to pay no interest for the first five years, then to resume interest payments for the next 5 years, & at maturity in ten years, to repay the principal plus the interest that was not paid for the first 5 years, but without paying "interest on the deferred interest." If the required rate of return is 20%, determine the bonds sell for in market today?

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