Multiple Choice
A $100 face value one-year risk-free discount bond is priced at $95.The two-year discount bond is priced at $90.After one year,the two-year bond will take one of three equiprobable prices,spaced $5 apart.The middle value of these possible prices is
A) $90.25
B) $94.75
C) $95.00
D) $100.00
Correct Answer:
Verified
Correct Answer:
Verified
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