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Q# 01: a) Calculate the value / price of bond 11 % coupon rate with 2 years to maturity par value Rs 120 using the

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Q# 01: a) Calculate the value / price of bond 11 % coupon rate with 2 years to maturity par value Rs 120 using the following interest rate tree for calculation. b) The same bond has call and put option embedded in it. If bond is callable at 115 and Putable at 120, what should be value on bond. Kindly show your calculations 8.16% 6.3% 4.2 %

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