YMMV Inc. issues a bond with a face value of $60,000,000 with a coupon rate of 4.250% maturing in 8 years. The current yield rate is r26) = 5.250%. TFC will secure the bond by making quarterly...

f1

Extracted text: YMMV Inc. issues a bond with a face value of $60,000,000 with a coupon rate of 4.250% maturing in 8 years. The current yield rate is r26) = 5.250%. TFC will secure the bond by making quarterly deposits into a sinking fund paying 1.250% compounded quarterly. YMMV defaults on the bond after 7 years (just after making their coupon payment, and sinking fund deposit). The bondholders receive the balance in the sinking fund. How much money do they lose? O a. $6,423,839.58. O b. $7,217,797.29. O c. $7,578,687.15. O d. $7,506,509.18. O e. $6,279,483.64.