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8. What is the purpose of constructing a binomial tree in bond valuation? A) To model the possible future movements of interest rates. B) To

8. What is the purpose of constructing a binomial tree in bond valuation?

A) To model the possible future movements of interest rates.

B) To model the possible future movements of the bond's price.

C) To model the possible future movements of the bond's coupon rate.

D) To model the possible future movements of the bond's credit rating.

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