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What is the interest rate volatility ()? a. 10% b. 15% c. 20% Use the following market information to answer the questions. 1-year par rate:

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What is the interest rate volatility ()?

a. 10%

b. 15%

c. 20%

Use the following market information to answer the questions. 1-year par rate: 2.00% 2-year par rate: 3.00% 3-year par rate: 4.00% Binomial Interest Rate Tree: Year 0 Year 1 Year 2 8.167% 4.646% 2.000% 6.050% 3.442% 4.482% Use the following market information to answer the questions. 1-year par rate: 2.00% 2-year par rate: 3.00% 3-year par rate: 4.00% Binomial Interest Rate Tree: Year 0 Year 1 Year 2 8.167% 4.646% 2.000% 6.050% 3.442% 4.482%

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