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You estimate that a 1 - year zero - coupon bond ( face value = $ 1 0 0 0 ) has a probability of

You estimate that a 1-year zero-coupon bond (face value =$1000) has a probability of default equal to 19%. In the event of default, you estimate the bond issuer will pay $582. The current risk-free rate is 3%. How much should you pay for this bond?
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