The value of a bond is given by bond value = asset value - value...
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Finance
The value of a bond is given by
bond value = asset value - value of call option on assets.
bond value = asset value - value of call option on assets and bond value = value of an equivalent default-free bond + value of put option on assets.
bond value = value of an equivalent default-free bond + value of put option on the stock and
bond value = asset value + value of call option on the stock. bond value = asset value + value of call option on the stock.
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