Assume the following for a 3-period binomial tree

i₀ = 5%, i_1H = 6.3%, i_1L = 4.3%, i_2HH = 8.2%, i_2HL = 5.7%, i_2LL = 4.2%

For Q1-Q4

Pricing a bond with embedded options on a tree:

Price a 3-year, annual-pay bond with a coupon of 7.25% that is callable in years 1 and 2 at 102.

(If the bond is called in that node, give the price after the bond is called.)

1. What is B_2HH? (Be precise to 4 decimals.)

2. What is B_2LL? (Be precise to 4 decimals.)

3. What is B_1H? (Be precise to 4 decimals.)

4. What is the price of the bond, B₀? (Be precise to 4 decimals.)