Using a 50%; 50% probabilities binary-interest-rate-tree model, and the following assumptions, r0 = 4.000% rL = 5.500% rH = 6.718% volatility = 10%
Calculate the price of the 2-year 5.7% option-free bond. Please show your work.
The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.