Assume the following interest rate tree (assuming today is 15 Nov 2016)

			2.71%
		2.07%
	1.55%		2.01%
1.13%		1.53%
	1.14%		1.49%
		1.13%
			1.10%
Current rate	6 months	12 months	18 months

1. Calculate value of the (option-free) bond using binomial model.
2. Assume the bond is putable on 15 Nov 2017 and 15 May 2018 at $101.00, calculate the value of the bond.
3. Calculate value of the put option and comment on who bears the cost of the put option.