What would be the implied price of a default-free 1.6%

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Question: You have built the following interest rate tree for the next 2 years: Time 0 (%) Time 1 (%) i2h = 3.25 i1 = 2.74 i2l = 1.49 What would be the implied price of a default-free 1.6% 2-year bond which is putable at par in 1 year, based on this information?

Reference no: EM133377546

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