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Better Buy has a $1,500 pure discount bond that comes due in one year. The risk-free rate of return is 4 percent. The firm's assets

Better Buy has a $1,500 pure discount bond that comes due in one year. The risk-free rate of return is 4 percent. The firm's assets are expected to be worth either $1,200 or $1,900 in one year. Currently, these assets are worth $1,300. What is the current value of the firm's debt? $95.46 $107.30 $798.44 $946.58 $1,173.63

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