Business
Business, 14.06.2021 18:20, b00n4l1f3

Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent probability of being priced at $1,050 one year from today. The bond is also callable at any time at $1,010. What is the expected value of this bond in one year? A) $1,000
B) $980
C) $1,010
D) $995
E) $986

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Answers: 1

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Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent...

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