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Kruger, Inc. has a $10,000 pure discount bond that comes due in one year. The risk-free rate of return is 3 percent. The firm's assets
Kruger, Inc. has a $10,000 pure discount bond that comes due in one year. The risk-free rate of return is 3 percent. The firm's assets are expected to be worth either $9,900 or $12,100 in one year. Currently, these assets are worth $11,000. What is the current value of the firm's debt? $9,947.23 $9,150.08 $9,674.76 $8,752.10 $8,428.33
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