
- UID
- 223220
- 帖子
- 221
- 主题
- 170
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-19
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question on bond valuation with embedded options
why do we use binomial risk free rate interest tree to value callable and putable corporate bonds? aren’t they overvalued like that?
and do we get the actual market price of the bonds when we value then with tree? |
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