If I were to calculate the risk neural probability for a given bond and I had two different return rates, so r=A(1)/A(0)-1 doesn't equal A(2)/A(1)-1, would I take the average of the return rates or calculate two different risk neutral probabilities?
If I were to calculate the risk neural probability for a given bond and I had two different return rates, so r=A(1)/A(0)-1 doesn't equal A(2)/A(1)-1, would I take the average of the return rates or calculate two different risk neutral probabilities?