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Chubb Company has a $9,000 pure discount bond that comes due in one year. The risk-free rate of return is 4 percent. The firm's assets

Chubb Company has a $9,000 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 $8,800 or $12,000 in one year. Currently, these assets are worth $10,000. What is the current value of the firm's debt? $7,329.03 $7,648.24 $8,041.23 $8,557.69 $9,742.63

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