Junk Corp.'s high yield bond has the following features:Special features: Company may extend the life 
of the bond to 10 years
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?
Definitions:
Truth
The property of statements that accurately reflect reality or are in accordance with facts.
Subjectivist Fallacies
Errors in reasoning that occur when subjective opinions or personal preferences are presented as objective facts.
Fallacy
A fallacy is a misleading or unsound argument that appears logical at first glance but does not hold up under scrutiny, often due to flawed reasoning or misleading premises.
Evidence
Information, data, or facts presented in support of an assertion, claim, or argument.
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