4. Consider the following tree 0.338464 0.262012 0.196941 0.245776 0.14318 0.186493 0.1 0.137401 0.17847 0.097916 0.13274 0.095862

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4. Consider the following tree 0.338464 0.262012 0.196941 0.245776 0.14318 0.186493 0.1 0.137401 0.17847 0.097916 0.13274 0.095862 0.129596 0.09448 0.094106 a) What is the price of a 4-Year 9% coupon $100 Par bond that is callable at the end of Year 1 for $85 and from the end of Year 2 for $ 87, but is not callable in Year 3. b) What is the price of the embedded option

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4. Consider the following tree 0.338464 0.262012 0.196941 0.245776 0.14318 0.186493 0.1 0.137401 0.17847 0.097916 0.13274 0.095862

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