Kruger, Inc. has a $10,000 pure discount bond that comes due in one year. The risk-free...

Kruger, Inc. has a $10,000 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 $9,900 or $12,100 in one year. Currently, these assets are worth $11,000. What is the current value of the firm's debt?

		$9,947.23
		$9,150.08
		$9,674.76
		$8,752.10
		$8,428.33

Expert Solution

jeff jeffy answered 1 month ago

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