I’m completely lost on these bad boys. I seem to understand it when they give me the price of the bond and then I can use backward induction, but when they just throw a bunch of rates out there I don’t have a clue on how to solve it. Any tips or helpful videos you guys have seen around to help explain?
I’m not sure I’ve encountered an interest rate tree problem where I didn’t have the tree and some of the bond prices given to me.