If the market interest rate is 10%, then the expected present-day value of a 1-year, $1000-face value discount bond with default risk of 10% is

If the market interest rate is 10%, then the expected present-day value of a 1-year, $1000-face value discount bond with default risk of 10% is

If the market interest rate is 10%, then the expected present-day value of a 1-year, $1000-face value discount bond with default risk of 10% is




A) $818
B) $833
C) $1000
D) $9,000









Answer: A