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 an option-free bond using pathwise valuation:

Using pathwise valuation method and the rates given above, compute the price of a 3-year annual-pay bond with a coupon of 7.25%.

1. What is the bond price along the path HH? (Be precise to 3 decimals.)

2. What is the bond price along the path HL? (Be precise to 3 decimals.)

3. What is the bond price along the path LH? (Be precise to 3 decimals.)

4. What is the bond price? (Be precise to 3 decimals.)