A firm issued an 8% coupon bond (semiannual coupon payment) 20 years ago. The bond now has 10 years left until its maturity date, but the firm is having financial difficulty. Investors believe that the firm will be able to make interest rate payments only for the first eight years. Starting in year nine, the firm will not be able to pay any coupon. In total, the firm will miss four coupon payments. Also, investors believe that the firm will be forced into bankruptcy eventually and bondholders will receive only 75% of par value. a. If the required interest rate is 11%, what is the present value of the coupon payments that the firm is able to pay? What is the present value of the par that the firm is able to pay?
b. What should the bond be selling at?
c. What is the stated yield-to-maturity (YTM) of the bond?

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.