Question: The following binomial interest rate tree can be used for valuing an option-embedded XYZ bond with a maturity of up to three years: Suppose XYZ

The following binomial interest rate tree can be used for valuing an option-embedded XYZ bond with a maturity of up to three years: Suppose XYZ just issued a 2-year 8% puttable bond. The bond is puttable in year 1 at par. Using the interest rate tree, what is the value of this 2 -year 8% puttable bond? Select one: a. 99.76 b. 104.58 c. 102.33

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