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A Company has a current value of $10,000 and debt outstanding consisting of a zero-coupon bond with a face value of $10,000 due in one

A Company has a current value of $10,000 and debt outstanding consisting of a zero-coupon bond with a face value of $10,000 due in one year. Risk-free rate is 11% per year. Assume the value of firm's assets will either increase by 25% or decrease by 25%. What is the current value of the firm's debt ? Round the value of the firm's debt to two decimals (e.g. 22.05) and the unit is ($). Your

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