# 4 SUPPOSE that Treasury bond rates and currently loss but wil change tomorrow to DO Gibb or 1456: cach outcome Is Equally likely . After the rate change , rates and Deducted to remain at other EY's or 1 = 's Dominantly _ Lot us consider a Za_VL` 10^` callable bond with the strike price of $105 and the call protection gorod of s yours . The market Ance of the callable bond Is $93. 20. ASSUTID annual Compounding . What's the fair value of the callable bond without any cons duration of credit Ask' ? What Is the yield spread between the callab & band and a 20- year 104 straight bond'! What Is the affective duration of the calaba bond ? What's the GAS on the callable band