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The assets of waste management Corp. are currently worth $600. These assets are expected to be worth either $883.80 or $407.33 one year from now.
The assets of waste management Corp. are currently worth $600. These assets are expected to be worth either $883.80 or $407.33 one year from now. The company has a pure discount bond outstanding with a $600 par and a maturity date of one year. The risk-free rate is 3.6 percent. What is the yield on the debt?
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