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3. If the yield to maturity for a one-year option-free annual coupon bond is 1.25%, and yield to maturity for a two- year option free

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3. If the yield to maturity for a one-year option-free annual coupon bond is 1.25%, and yield to maturity for a two- year option free annual coupon bond is 1.5%, Find io, i1H, and ill for a volatility of 12% using the binomial lognormal model. 3. If the yield to maturity for a one-year option-free annual coupon bond is 1.25%, and yield to maturity for a two- year option free annual coupon bond is 1.5%, Find io, i1H, and ill for a volatility of 12% using the binomial lognormal model

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