Please calculate the value of the option of a 2 years 5% putable bond knowing...
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Accounting
Please calculate the value of the option of a 2 years 5% putable bond knowing that:
a. The option can be exercised only after one year
b. The interest rate tree is given by: one year rate = 4%; one year out rates rL = 4.5%, rH = 5.5%
c. The bond can be put at par
Edit: This is the entire question...This is all I was given...
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