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You have built the following interest rate tree for the next 2yearsTime 0 (%)Time 1 (%)I2h = 3.71I1 = 2.01I2l = 1.51A risky 4.37% 2-year
You have built the following interest rate tree for the next 2yearsTime 0 (%)Time 1 (%)I2h = 3.71I1 = 2.01I2l = 1.51A risky 4.37% 2-year bond which is callable at par in 1 year i 2 answers
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