21.9. Consider a 4-year European call option on a bond that will mature in 5 years. The 5-year bond price is $105, the price of a 4-year bond with the same coupon as the 5-year bond is $102, the strike price of the option is $100, the 4-year risk-free interest rate is 10% per annum (continuously compounded), and the volatility of the forward price of the bond underlying the option is 2% per annum. What is the present value of the principal in the 4-year bond? What is the present value of the coupons in the 4-year bond? What is the forward price of the bond underlying the option? What is the value of the option?