Pricing and Analysis of a Callable Bond The objective of this report is to price a callable bond in the market. The bonds specification are as follows: Face value $100 million Coupon rate: 4%, semiannual, pa Maturity: 6 years Callability option. The bund can be redeemed (called) only in year 4, with a call price of 395 Furthermore, market data indicates that the current 6-mouth rate is 5%. The annualized drift and volatility are as follows Annualized drift for years 1 and 2: 10% Annualized drift for years 3 and 4: 12% Annualized drift for yours 5 and 6: 14% Annualized volatility: 10% a) Expected Path for the 6-Month Rate: In this section, present the expected path for the 6-month rate over the next 6 years. In particular, report the binomial tree for the future path of the short-term rate b) Market Quote for the Callable Bond: In this section, determine the market quote for the callable bond. This will include: Yield-to-maturity for the callable bond Yield-to-call love the callable bond Yield-to-worst for the callable bond You must use information from the binomial tree to price the bond, c) Price of the Callable Bond with Call Option: Here, support the price of the callable bond considering the call price at year 4 d) Implicit Spot Rates for each Maturity Derive the implicit spot rates from the tree for years 0.5, 1.0, 1.5, and so on up to 6.0 ears. e) Zero-Volatility Spread (Z-Spread) Calculate the Z-Spread, assuming the callable bond's price determined in pat c), and the relevant discount rates are those obtained in part d). What is the economic interpretation of the Z-Spread? Reporting This report will be presented in a concise and well-organized manner, not exceeding 15 pages. It will include relevant tables and graphs to enhance clarity. The dat date for submitting this project.