Given an ABC convertible bond with \(F=\$ 1,000\), maturity of three periods, Conversion Ratio \(=10\), current stock price of \(\$ 100\), and \(u=1.1, d=0.95\), and \(q=0.5\) on the stock:

a. Calculate the value of the bond using a binomial tree of stock prices. Assume no call on the bond and a flat yield curve at \(10 \%\) that is not expected to change.

b. Calculate the value of the bond using a binomial tree of stock prices. Assume the bond is callable at \(C P=\$ 1,200\) and a flat yield curve at \(10 \%\) that is not expected to change.