Question: ( b ) Suppose that MI has zero - coupon debt with a $ 1 2 5 million face value due next year. The initial

(b) Suppose that MI has zero-coupon debt with a $125 million face value due next year. The initial value of MIs debt is closest to:
(1) $125 million
(2) $111 million
(3) $100 million
(4) $116 million

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