• The firm issues a straight corporate bond: par value = $200, annual coupon = $50 (paid once a year), maturity = 2 years.
• The current total value of the firm (including equity and the debt) = $500.
• The firms future values follow a two-state path with up state growth multiple u = 1.50 and down state growth multiple d = 0.67 each year.
• The annual risk-free rate = 5%.
• Assume annual compounding and annual coupon payment.

Calculate the price of the straight corporate bond