Why would someone pay for the bonds of a bankrupt firm


The bonds of Columbia Gas paid no interest in 1993 because the firm had declared bankruptcy. One issue of these bonds, the 8 1/4 percent coupon bonds due in 1996, was selling at 109% of par value, or for approximately $1,090. Why would someone pay $1,090 for the bonds of a bankrupt firm?

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Finance Basics: Why would someone pay for the bonds of a bankrupt firm
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