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Assume the following information is given: The one year spot rate is 6 . 5 % . Two - year, annual coupon bonds are selling

Assume the following information is given:
The one year spot rate is 6.5%.
Two-year, annual coupon bonds are selling at par and yield 6%.
Assume an interest rate for the "down" scenario: 7% and the UP is 8.749%. What is the Bond Price using Binomial theory?

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