\#14. (14 points) Assume there are a straight bond and a callable bond. Both of the bonds have the remaining maturity of 10 years, pay 6% coupons, and have a face value of $100. The callable bond has a strike price of $105. The call protection just has ended on the bond today. Interest rates are now at 5%, but they are going to change tomorrow, when the Fed will make a new money supply announcement. For simplicity, it is assumed that rates will never change again. Investors' beliefs about what the Fed will do are shown below: Assume that the bond price equals the expected value of the various prices in the future is where the assumption that investors require the same expected return on non-callable and callable bonds comes into play. What is the (expected) price of two bonds (the straight and the callable bonds) today? Assume annual compounding