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Sunlife Company has a $18,000 pure discount bond that comes due in one year. The risk-free rate of return is 3 percent. The firm's assets
Sunlife Company has a $18,000 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 $16,000 or $21,000 in one year. Currently, these assets are worth $19,000. What is the current value of the firm's debt?
$15,807.64 | ||
$16,920.39 | ||
$16,454.78 | ||
$15,398.20 | ||
$17,530.66 |
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