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1. Using a binomial interest rate tree, fill out the table below. ( 100 points) The first four columns are inputs. PO.5 is the price

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1. Using a binomial interest rate tree, fill out the table below. ( 100 points) The first four columns are inputs. PO.5 is the price of a six-month zero-coupon bond. P1 and CR1 are, respectively, the price and coupon rate of a 1-year coupon bond. P1.5 and CR1.5 are, respectively, the price and coupon rate of a 1.5-year coupon bond. Sigma is the assumed for the binomial interest rate tree. All face values are assumed to be $100. The last two columns are outputs. PNC is the price of a non-callable 1.5-year coupon bond with a coupon rate of 10.5% and face value of $100.PC is the price of a (Bermudan) callable 1.5-year coupon bond with a coupon rate of 10.5%, face value ok $100, and strike price of $100; assume that the bond issuer calls the bond whenever the ex-coupon price exceeds the strike price. I have already filled out the first row; it is approximately the example we worked through in class. I have also filled out a couple of the remaining cells for you to double-check your work. 1. Using a binomial interest rate tree, fill out the table below. ( 100 points) The first four columns are inputs. PO.5 is the price of a six-month zero-coupon bond. P1 and CR1 are, respectively, the price and coupon rate of a 1-year coupon bond. P1.5 and CR1.5 are, respectively, the price and coupon rate of a 1.5-year coupon bond. Sigma is the assumed for the binomial interest rate tree. All face values are assumed to be $100. The last two columns are outputs. PNC is the price of a non-callable 1.5-year coupon bond with a coupon rate of 10.5% and face value of $100.PC is the price of a (Bermudan) callable 1.5-year coupon bond with a coupon rate of 10.5%, face value ok $100, and strike price of $100; assume that the bond issuer calls the bond whenever the ex-coupon price exceeds the strike price. I have already filled out the first row; it is approximately the example we worked through in class. I have also filled out a couple of the remaining cells for you to double-check your work

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