Consider the following binomial interest rate tree. Volatility of interest rates is 0.2. X Time 0 1 2 3 1.500% 2.500% 4.103% 1.676% y 3.854% 1.843% 2.584% 1.732% a) calculate the rates indicated by x and y. b) Calculate the value of a 4 year 3% annual coupon bond with par value of $1000. c) if the bond in (b) is puttable during years 3 and 4, what would be its value? Consider the following binomial interest rate tree. Volatility of interest rates is 0.2. X Time 0 1 2 3 1.500% 2.500% 4.103% 1.676% y 3.854% 1.843% 2.584% 1.732% a) calculate the rates indicated by x and y. b) Calculate the value of a 4 year 3% annual coupon bond with par value of $1000. c) if the bond in (b) is puttable during years 3 and 4, what would be its value