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Consider a two-year coupon bond issued by an airline with - a face value of $1,000, - a coupon rate of 3%, - an annual

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Consider a two-year coupon bond issued by an airline with - a face value of $1,000, - a coupon rate of 3%, - an annual default probability of 5%, - and a risk-free interest rate of 3% per year. 4. Use a binomial tree to value the bond assuming no recovery. Show your work for partial credit; write your answer in dollars and cents on the line below. A. The value (price, expected present value, etc.) of the bond is $

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