Question: A zero-coupon bond matures in two time-steps. Before maturity this zero-coupon bond has values P(0)=0.86,P(1,)=0.96 and P(1,)=0.92. For constant risk-neutral probability =0.6, what is the

A zero-coupon bond matures in two time-steps. Before maturity this zero-coupon

A zero-coupon bond matures in two time-steps. Before maturity this zero-coupon bond has values P(0)=0.86,P(1,)=0.96 and P(1,)=0.92. For constant risk-neutral probability =0.6, what is the return R(0) ? Hint: write the common formula for and do some algebra. Need calculation step by step in detail, Thanks

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