Explain accurately value bond options
If the model could not even find bond prices right, how could this hope to accurately value bond options?
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Thomas Ho and Sang-Bin Lee found a way around it, introducing the concept of yield-curve fitting or calibration, 1986.
Which of these two ways is better: discounting the Free Cash Flow or discounting the Equity Cash Flow?
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How could we acquire an indisputable discount rate?
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