A bond with two years until maturity, a par value of $100, and a coupon rate of 8.5% (coupons paid annually) is callable at any time up until maturity at $102. Given the interest rate tree below, what is the value of the callable bond? 11.60% 7.20% 5.76% Today Year 1 11.60%7.20% 5.76% Today Year 1

A) $102

B) $101.65

C) $100.85