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Electronic Importers has a pure discount bond with a face value of $30,000 that matures in one year. The risk-free rate of return is 3.6
Electronic Importers has a pure discount bond with a face value of $30,000 that matures in one year. The risk-free rate of return is 3.6 percent. The assets of the business are expected to be worth either $29,000 or $35,000 in one year. Currently, these assets are worth $28,300. What is the current value of the bond? |
$28,146.14 |
$19,206.67 |
$20,222.22 |
$22,547.69 |
$28,043.56 |
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