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Business, 29.06.2021 01:00 kimlyn58p0wyn0

Big Ed's Electrical has a pure discount bond that comes due in one year and has a face value of $1,000. The risk-free rate of return is 4 percent. The assets of Big Ed's are expected to be worth either $800 or $1,300 in one year. Currently, these assets are worth $1,140. What is the current value of the debt of Big Ed's Electrical? a) $222.46
b) $370.77
c) $514.28
d) $769.23
e) $917.54

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