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Zero Coupon Bonds CFO CF1 Probability of Expected Expected at T = 0 Promised Worst Case * Worst Case * Value of CF1 * Value
Zero Coupon Bonds CFO CF1 Probability of Expected Expected at T = 0 Promised Worst Case * Worst Case * Value of CF1 * Value Return * Bond 1 $65.0 $100.0 $50.0 0.4500 $77.50 2 $91.0 $100.0 $60.0 $98.40 0.0813 3 $95.0 $100.0 0.0100 $99.85 0.0511 * Estimates Question 1 1 pts What is the expected value return of bond 1? Compute your answer to four decimal places and do not represent your answer as a percent
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