Consider a convertible bond with maturity of one year that pays a coupon of 2.5% at maturity and has conversion ratio of 4.5 . One year risk free interest rate is 5% and the underlying stock price is $20 with annual volatility of return of 30%. The underlying stock pays a dividend of 25 cents ($0.25) every six months. Use a two step binomial model to I. Determine the price of the bond. II. Determine the net gain or loss if stock price goes up by $3. III. Determine the net gain or loss if stock price goes down by $3