0.08 0.07 0.06 0.06 0.05 0.04 Use the annual interest rate lattice above to answer this question. Assume that all interest rates are continuously compounded and risk- neutral probability q=0.5. Suppose that there exists a callable bond that matures in 2 years with a par value of 100 and a coupon rate of 5%. The bond can be called only at year 1 at a price of $99. What is the price of the callable bond? a 97.43 100 99.56 102.34