Question: can u please show your work and any formulas involved - Consider a risky bond with a cash flow of $1100 when the economy is

can u please show your work and any formulas involved

- Consider a risky bond with a cash flow of $1100 when the economy is strong and $1000 when the economy is weak. Suppose a 1% risk premium is appropriate for this bond. - IF the risk-free interest rate is 4%, what is the price of the bond today

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