Given the 1-period forward rates of 3%, 4%, and 5% for year 1, 2 , and 3, and an interest rate volatility of 10%.

Use the binomial interest rate tree, assuming that forward rates could go up with a 60% probability and go down with 40% probability, to compute the price for a 3-year, 6%, $100 face value bond which is putable at the end of year 2 and year 3, at a put price of $99.