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If ABC Corp has issued zero-coupon bonds with a three-year maturity. Each bond has a face value of $100. Investors believe there is a 10%
If ABC Corp has issued zero-coupon bonds with a three-year maturity. Each bond has a face value of $100. Investors believe there is a 10% chance that ABC corp will default on these bonds. If ABC does default, investors expect to receive only 60 cents per dollar they are owed. If investors require 5% expected return on their investment in these bonds, the price on these bonds will be $__
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