What is the value of the call

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Reference no: EM132517635

a. Calculate the VH, VL and V0 for an option-free bond with the binomial model A 7% annual coupon bond has two years to maturity.

b. If the bond can be called in one year at $100, what is the value of the callable bond today?

c. What is the value of the call?

Reference no: EM132517635

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