Consider a 3-year, 6.0% annual coupon bond represented by the binomial interest rate tree on the following page. The one-year implied forward rates are provided for one node of each year of the bond. Assume that the interest rate volatility = 20%. Please complete the tree, filling in the other interest rates and the value of the bond at each node (wherever a ???? occurs, fill in an answer). Note that each node except the one at time=0 represents the payment of a 6.0% coupon, so be sure to include that in the valuation. Show your supporting work in the space below.

V = 100 C = 6.0 V= ???? C=6.0 12.HH = ???? V = ???? C=6.0 V = 100 C = 6.0 11h = ???? V = ???? C=6.0 V=???? io = 3.00% 12.6L = ???? V = ???? C=6.0 111= 3.50% V = 100 C = 6.0 V = ???? C=6.0 12.LL = 4.10% V = 100 C = 6.0 Time = 0 Time = 1 Time = 2 Time = 3 V = 100 C = 6.0 V= ???? C=6.0 12.HH = ???? V = ???? C=6.0 V = 100 C = 6.0 11h = ???? V = ???? C=6.0 V=???? io = 3.00% 12.6L = ???? V = ???? C=6.0 111= 3.50% V = 100 C = 6.0 V = ???? C=6.0 12.LL = 4.10% V = 100 C = 6.0 Time = 0 Time = 1 Time = 2 Time = 3