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Question 17 A 3-year bond has a 3.9% coupon paid annually. This bond is putable at the end of years 1 and 2 at par.

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Question 17 A 3-year bond has a 3.9% coupon paid annually. This bond is putable at the end of years 1 and 2 at par. It has an OAS of 0.3%. What is price of the bond? Use the following credit-risk-free interest rates. 10 = 2.5%, inH = 4.4%, 11.L = 2.6%, 12HH = 7.1%, 12HL = 4.3%, izul = 2.7%. Give the interim values to get partial credit. 12pt Paragraph B 1 VA 2 T2 EE Tev

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