What are stated and expected yields to maturity of the bonds

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An 8-year bond of a firm n severe financial distress has a coupon rate of 12% and sells for $950. The firm is currently renegotiating he debt and 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 lower payments. What are the stated and expected yields to maturity of the bonds? The bond makes its coupon payments annually. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Stated yield to maturity   %

Expected yield to maturity %

Reference no: EM131621915

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