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)$995
B)$980
C)$1,000
D)$1,020
E)$940

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The Answer of 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)$995
B)$980
C)$1,000
D)$1,020
E)$940

Analysts Estimate That a Bond Has an Equal Probability of Being