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Panera Corporation has a $12,000 pure discount bond that comes due in one year. The risk-free rate of return is 3 percent. The firm's assets
Panera Corporation has a $12,000 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 $12,000 or $21,000 in one year. Currently, these assets are worth $16,000. What is the current value of the firm's debt?
$11,320.78 | ||
$11,763.42 | ||
$11,890.51 | ||
$11,650.49 | ||
$12,547.66 |
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