Question: Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: ro = 0.900%, rL = 2.200%, rH = 2.531%, volatility = 7%. Calculate the

Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions: ro = 0.900%, rL = 2.200%, rH = 2.531%, volatility = 7%. Calculate the price of the 2-year 3.5% option-free bond. 103.68 101.60 105.20 103.48 103.44

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