Reading 60 - Example 7 (binomial option payoffs)

Binomial option pricing for a three period 6% coupon bond. CFAI does not take into account any coupon payments at any point in the tree except at the start (end of the tree) when you discount the 1.06 (the maturity value). Any ideas why coupons aren’t included? Schweser seems to conflict with this. Thanks in advance

Because your pricing the option and not the bond itself.

Ack they were just calculating intermediary prices for fun! Thanks for the reply dtrynoski.