- FIN 440 - Intro to Fixed Income Analytics Callable Bond Pricing - Due Friday 10/29 in Class Do at home, bring a printed copy into class to hand in (on a separate sheet). - Can be done via excel or hand-written. Need to display all of the final values at each node (just like our handout). Use your notes and the 2 videos I posted on this topic for assistance It's helpful if you show one or two of your calculations. This will be counted as a 20-poirit homework assignment (rather than 100). I'll give it back to you for a "re-do" after I look at them. Please calculate the price of a callable bond with the following characteristics: Coupon Rate: 2.35% Par value is $100 Callable at Par ($100) in year 1 and year 2 Annual pay Matures in 3 years Assumed forward rates (with volatility) below Don't forget to (1) value at each node and then (2) evaluate the call Fwd Rate (0-> 1) Fwd Rate (1->2) Fwd Rate (2-> 3) 2.96% 2 2.64% 2.00% 2.64% 2.16% 2.32%