11) Assume the following interest rate tree {5 marks}: Current 6month E 12 13 rate months months months a} Calculate value of le [optiontree) bond using binomial model [note that interest rates in the tree above are presented in the annualised form]. b} Assume the bond is callable on 3D Sep 201? and 3!} Mar EDIE at $1.5, calculate the value of the bond. c} Calculate value of the call option and comment on who bears the cost of the call option