Consider a semi-annual coupon bond. Its face value is $1,000, it bears a 6 percent coupon rate per year, and will mature in 2 years

Suppose that the CIR model generates the following binomial interest tree (forward rates) lattice. Calculate the bond price using the backward induction method.

t=1	t=2	t=3	t=4
0.90	2.2	4.9	8.7
	1.8	2.8	5.0
		1.6	2.9
			1.7