Ted's Welding Shop Has a Pure Discount Bond with a Face

Ted's Welding Shop has a pure discount bond with a face value of $5,000 that matures in one year. The risk-free rate of return is 4.5 percent. The assets of the business are expected to be worth either $4,800 or $5,200 in one year. Currently, these assets are worth $4,750. What is the current value of the bond?

A) $4,006.13
B) $4,166.67
C) $4,268.11
D) $4,671.65
E) $4,784.69