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Price a 3-year, 3.7% annual coupon, $1000 par bond callable at par in year 1 and year 2, using the following calibrated interest rate model.
Price a 3-year, 3.7% annual coupon, $1000 par bond callable at par in year 1 and year 2, using the following calibrated interest rate model. Assume annual compounding. Round your answer to 2 decimal places. t = 0 t = 1 t = 2 r_2,HH = 6.2% r_1, H = 3.5% r_0 = 1.4% r_2,HL = 3.6% r_1,L - 2.4% r_2.LL = 2.7% Price a 3-year, 3.7% annual coupon, $1000 par bond callable at par in year 1 and year 2, using the following calibrated interest rate model. Assume annual compounding. Round your answer to 2 decimal places. t = 0 t = 1 t = 2 r_2,HH = 6.2% r_1, H = 3.5% r_0 = 1.4% r_2,HL = 3.6% r_1,L - 2.4% r_2.LL = 2.7%
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