Question: A zero - coupon bond with a market - beta of 0 . 3 promises to pay $ 1 , 0 0 0 in the

A zero-coupon bond with a market-beta of 0.3 promises to pay $1,000 in the first year. However, it may default and pay nothing with probability 0.1. If the risk-free rate is 2.6%, the equity premium is 6%, and the CAPM is correct, what would be the bond price today? round 4 decimal places.

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