Question: b) Compute the difference in the log value that optimist and pessimists attach to the bond, i.e. In Vo In Voss. In = VOpt.

b) Compute the difference in the log value that optimist and pessimists attach to the bond, i.e. In Vo In Voss. In = VOpt. 0,T 0,T VPs). How does bond maturity affect the disagreement between optimists and pessimists regarding the bond value?

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