b) Value a 3-period option-free bond with the following characteristics: 1. The bond matures in 3 periods 2. The bond has no default risk 3. The bond pays an 8% coupon each period 4. The bond pays $1,000 principal at maturity 5. The probability of an up and down movement is the same (50%). c) Assume that the bond in part (b) is a callable bond at 1.010, starting in period 1 (The issuer cannot call the bond at time zero). Value the 3-period callable bond, showing in each period (0, 1, and 2) and for each of the interest rates, the value of the bond (non-callable), the value of the call option, and the value of the callable bond.