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Concord Company has a $10,000 pure discount bond that comes due in one year. The risk-free rate of return is 4 percent. The firm's assets

Concord Company has a $10,000 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 $8,000 or $13,000 in one year. Currently, these assets are worth $11,000. What is the current value of the firm's debt?

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