Analysts estimate that a bond has an equal probability

Assignment Help Financial Management

Reference no: EM131355260

Analysts estimate that a bond has an equal probability of being priced at either $940 or $1,050 one year from today. The bond is also callable at any time at $1,020. What is the expected value of this bond in one year?

a. $1,020

b. $940

c. $995

d. $1,000

e. $980

Reference no: EM131355260

Questions Cloud

Market for goods and services : Explain why "circular flow" between the market for goods and services, the labor market and the money market are crucial for macro-economic equilibrium.

Project will produce cash inflow : A project will produce cash inflows of $3,200 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 16 percent?

Traditional principles of international peacekeeping : 350 words please list references How relevant are the traditional principles in the 21st century? What are the three traditional principles of international peacekeeping? Are all three still equally relevant today? Explain why and or why not.

How the accuracy varies with the choice of the slice width : User input is to be the radius and width of the slice. Check the result with that obtained from Table 2. Note how the accuracy varies with the choice of the slice width.

Analysts estimate that a bond has an equal probability : Analysts estimate that a bond has an equal probability of being priced at either $940 or $1,050 one year from today. The bond is also callable at any time at $1,020. What is the expected value of this bond in one year?

Western european countries : What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Would you consider working for the national service corps : Would you consider working for the National Service Corps for financial compensation in another area, another community, or in a designated poverty area? Why or why not?

Customer survey for each market region : Customer Survey for each market region as a cross-tabulation (use pivot tables as appropriate), along with frequency distribution, histograms, and quatiles of these data.

Difference between microeconomics and macroeconomics : What is the difference between microeconomics and macroeconomics? Answer in paragraph at least 100 words. More preferred.

User Account

All Pages