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You have built the following interest rate tree for the next 2 years: Time 0 (%) Time 1 (%) i2h = 3.39 i1 = 2.5
You have built the following interest rate tree for the next 2 years:
| Time 0 (%) | Time 1 (%) |
| i2h = 3.39 | |
| i1 = 2.5 | |
| i2l = 1.19 |
What would be the implied price of a 4% 2-year bond based on this information?
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad Mcevoy
1st Edition
1934432040, 978-1934432044
