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Appropriate opportunity cost of capital

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Avant Corporation issues a 1-year zero-coupon bond with a face value $1000. There is a 50% chance that the bond will repay its full face value and a 50% chance that the bond will default and that you will receive $700. If the appropriate opportunity cost of capital is 5%, then the price of the bond is closest to?

Reference no: EM131086407

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