Company PQR has issued a zero-coupon bond with a face value of USD 2,000,000 that matures in 1 year. Currently, this bond is trading at 75% of its face value, implying that the market price is USD 1,500,000. Assume that in the event of default, the recovery rate is 0%, meaning bondholders will lose their entire investment. We also assume that any excess spread observed in the bond price is attributable solely to credit risk.

Additionally, the continuously-compounded risk-free interest rate is 3% per year. Using this information, calculate the 1-year risk-neutral probability of default for Company PQR using the risk-neutral binomial tree approach, considering the given conditions.