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There is a 50 chance that the bond will repay its full

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?

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Finance Basics: There is a 50 chance that the bond will repay its full

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