Consider a two period BDT model with

$$

$0$

$,$

$0$

$=$

$$

$0$

$=$

$6$

$\%$

r

$0,0$

$$

$=$a

$0$

$$

$=6\%,$

$$

$1$

$,$

$0$

$=$

$$

$1$

$=$

$5\mathrm{.}4$

$\%$

r

$1,0$

$$

$=$a

$1$

$$

$=5\mathrm{.}4\%$ and

$$

$1$

$,$

$1$

$=$

$$

$1$

$$

$$

$1$

r

$1,1$

$$

$=$a

$1$

$$

e

b

$1$

$$

$.$ If the market price of a zero coupon bond paying $100$ at t$=2$ is $88\mathrm{.}64.$ Give a good estimation of b$1.$

Round your answer to the fourth decimal place. If your answer is $0\mathrm{.}31311,$ submit $0\mathrm{.}3131.$

Note:

$$

$$

q

u

$$

and

$$

$$

q

d

$$

are both $0\mathrm{.}5$