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The value of a company is 1 0 0 0 expected to go up by 2 0 % or down by 1 0 % .

The value of a company is 1000 expected to go up by 20% or down by 10%. The company has a two-year zero-coupon debt with face value of 500. The risk free rate is 4%. The cost of equity is 14%. What is the yield on the debt?

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