Question: Consider a 3-year putable bond with 7% coupon rate which becomes putable at $101 in one year and stays putable at $101 in the following

Consider a 3-year putable bond with 7% coupon rate which becomes putable at $101 in one year and stays putable at $101 in the following years. As in the following exhibit the prices for an option-free bond in the second year are calculated as $99.115, $100.295, and $101.282 in upper, middle and lower nodes. Assume PH=PL=0.50. Here is the binomial tree and valuation for this bond in spread s:Consider a 3-year putable bond with 7% coupon rate which becomes putable

What is the modified price at Price at NHH when we consider that this bond is putable?

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