Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: r0 = 1.000%, rL = 2.500%,

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Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: r0 = 1.000%, rL = 2.500%, rH =2.993%, volatility = 9%. Calculate the price of the 2-year 4% option-free bond.

Posted Date: May 27, 2024 04:17 AM

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Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: r0 = 1.000%, rL = 2.500%,

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