10) (6.5 points) What is the value of a 3-year step-up callable note that pays 5% for two years and then 8% for two more years using the interest rate tree below. Assume that this note is callable in one year at par ($100). (i.e. The bond is callable starting from year 1). 9.1987% - NHHH 7.0053% NHH 5.4289% * NH 7.5312% NHHL . 3.5000% N 5.7354% NHL 6.1660% 4.4448% NL NHLL 4.6958% NLL 5.0483% NLLL Today Year 1 Year 2 Year 3 10) (6.5 points) What is the value of a 3-year step-up callable note that pays 5% for two years and then 8% for two more years using the interest rate tree below. Assume that this note is callable in one year at par ($100). (i.e. The bond is callable starting from year 1). 9.1987% - NHHH 7.0053% NHH 5.4289% * NH 7.5312% NHHL . 3.5000% N 5.7354% NHL 6.1660% 4.4448% NL NHLL 4.6958% NLL 5.0483% NLLL Today Year 1 Year 2 Year 3