3. Question 3 (a) Under terms of a Troubled Debt Restructuring, will the debtor always be better off?

3. Question 3 Under terms of a Troubled Debt Restructuring, will the debtor always be better off? Explain (24 points) XYZ Company is building a new baseball stadium at a cost of $3,000,000. It received a down payment of $600,000 from local businesses to support the project, and now needs to borrow $2,400,000 to complete the project. It therefore decides to issue $2,400,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2010, and pay interest annually on each January 1, beginning 2011. The bonds yield 8%. Required: (12 points) (13 points) (31 points)