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Use the following information for Questions 1-5: You observe the following set of spot rates: You also estimate that future interest rate volatility is 10%,
Use the following information for Questions 1-5: You observe the following set of spot rates: You also estimate that future interest rate volatility is 10%, which leads to the following binomial interest rate tree: Question 1 What is the value of a bond that matures in exactly 2 years, has par value of $100, an annual coupon of 4.4%, and is not callable? Round your answer to three Question 2
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