5. 10.23 9.56 a) Use the adjacent interest rate tree to price an 8% coupon 4-Year $100 Par bond. The bond is puttable at the end of Year 1 for a price of $99.75, at the end of Year 2 for $99.85, and at the end of Year 3 at Par. 8.91 8.83 7.8 7.21 7.1 7.41 b) What is the option value? 6.97 6.35 5. 10.23 9.56 a) Use the adjacent interest rate tree to price an 8% coupon 4-Year $100 Par bond. The bond is puttable at the end of Year 1 for a price of $99.75, at the end of Year 2 for $99.85, and at the end of Year 3 at Par. 8.91 8.83 7.8 7.21 7.1 7.41 b) What is the option value? 6.97 6.35