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Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: r0 = 1.300%, rL = 3.000%, rH = 3.592%, volatility = 9%. Calculate the
Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: r0 = 1.300%, rL = 3.000%, rH = 3.592%, volatility = 9%. Calculate the price of the 2-year 3.5% option-free bond. Group of answer choices 100.32 102.18 102.37 103.90 102.13
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