Question about bonds, not necessarily CFA question
Lets say I buy a $1000 bond for 80% of par value. The debtor is having a rough time and is having difficulty making interest payments and is distressed.
At the end of the bond’s term, would the owner of the bond get a principal pay back of $1000, $800 or would the lender and borrower work out some kind of principal payoff agreed upon by the two parties?
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