Junk Corp.'s high-yield bond has the following features:
a.If interest rates are currently 12 percent on comparable high-yield securities and are not expected to change,what is the price of this bond?
b.If interest rates are currently 9 percent on comparable high-yield securities and are not expected to change,what is the price of this bond?
c.If interest rates are currently 9 percent on comparable high-yield securities but the investor has no forecast as to future rates,what is the possible range of prices for this bond?
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