SkiingWarm Inc. plans to issue $260 million of bonds with a coupon rate of 8.5%, quarterly coupons, a par value of $10,000, and 15 years to maturity. The current market interest rate on these bonds is 7% and is expected to remain stable for the next two years. The bonds are callable in two years at $10,500. In two years, the interest rate on the bonds will either be 9.25% with a probability of 55% or 6.55% with a probability of 45%. Assume investors are risk neutral. What is the price of the bond today?

answer; /// the above statement is (false);

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

after cutting wages and benefits in order to increase profit .

apex~