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What happen to the price for which investors could sell bond

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Mr. Block's potato farm produces between 500 and 800 tons of potatoes each year if there is bad weather, and between 700 and 1,000 tons each year if there is good weather. The farm has several investors who together own a bond that entitles them to receive 600 tons of potatoes each year. Today there is .5 probability that weather will be good next year. If tomorrow that probability is changed to .4 for the succeeding year, what will happen to the price for which the investors could sell their bond?

Reference no: EM13892378

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