Avant Corporation issues a 1‐year zero‐coupon bond with a face value $1000.

Avant Corporation issues a 1‐year zero‐coupon bond with a face value 00. 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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