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On October 2016. you are in Toftebandited by a local the two bord, whose characteris given in the table below 25 mars Bond Maturity Coupon

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On October 2016. you are in Toftebandited by a local the two bord, whose characteris given in the table below 25 mars Bond Maturity Coupon Type of fond Bond A 1 October 2019 65 Cable to detober 2017 and on October 2018 Bonde 1 October 2014 65 Putat paron 1 October 2017 and on October 2015 Based on an estimated interest rate vality of you constructed the binomial interest rate free shown below 0.045 0.05881 009607 6.02942 005410 0.04312 11 the value of Bond A und Bond 21 markt 2) Which bond would my protongan significant increase indestres? 3) Alles being equal use a strate volatility of ind of on the band that mor in values 2 marks) Cancel interesate voy OFW YOU Otede

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