Question
You are interested in buying a 4-year, 6.5% (annual) coupon option free bond being issued by ABC. Your investment analyst has put together the following
You are interested in buying a 4-year, 6.5% (annual) coupon option free bond being issued by ABC. Your investment analyst has put together the following binomial tree to value this bond:
What is the value of the bond at node V1,H?
Group of answer choices
V1,H 90
90 < V1,H 95
95 < V1,H 100
100 < V1,H 105
105 < V1,H
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
