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Ted's Welding Shop has a pure discount bond with a face value of $5,000 that matures in one year. The risk-free rate of return is
Ted's Welding Shop has a pure discount bond with a face value of $5,000 that matures in one year. The risk-free rate of return is 4.5 percent. The assets of the business are expected to be worth either $4,800 or $5,200 in one year. Currently, these assets are worth $4,750. What is the current value of the bond
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