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b. $12086 =$14864 d. $131.51 e. $167.61 Guertian 5 UC Trading Ltd. is pianning to issue $1,0002-year bonds with a coupon rate of 20% per

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b. $12086 =$14864 d. $131.51 e. \$167.61 Guertian 5 UC Trading Ltd. is pianning to issue $1,0002-year bonds with a coupon rate of 20% per anmum. Coupon is paid sermi-annuslity. The cutrent market interest rates on this bond is 20% per annum. However, in one year, the interest rate on the bonds wim be elthet 70% or 30% per annim with equal probabirty. Assume investors are risk neutral. What is the price of the bond today? a. $1,160.67 b. $1,004,83 c. $1,034.25 d. $966.41 Q. $842.34

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