Question the bonds of columbia gas paid no interest in 1993, Ask an Expert

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Question: The bonds of Columbia Gas paid no interest in 1993 because the firm had declared bankruptcy. One issue of these bonds, the 81/4 percent coupon bonds due in 1996, was selling at 109 percent of par value, or for approximately $1,090. Why would someone pay $1,090 for the bonds of a bankrupt firm?

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Basic Finance, Finance

Category:- Basic Finance
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