Analysts estimate that a bond has a 40 percent probability, Ask an Expert

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Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent probability of being priced at $1,050 one year from today. The bond is also callable at any time at $1,010. What is the expected value of this bond in one year?

A) $1,000

B) $980

C) $1,010

D) $995

E) $986

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Financial Management, Finance

Category:- Financial Management
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