Ryan, an advisor in fixed-income portfolio management, is reviewing three fixed-rate annual coupon bonds, which will be issued on 1 May 2024 by a firm, Alpha, Inc. The characteristics of the three bonds are given in the following table: Type of Bond Option-free Bond Maturity Bond #11 May 2027 Bond #2 1 May 2027 Bond #3 1 May 2027 Coupon 1.50% annual 1.50% annual 1.50% annual Callable at par on 1 May 2025 and on 1 May 2026 Putable at par on 1 May 2025 and on 1 May 2026 Based on the current par curve and an estimated interest rate volatility of 15%, Ryan constructs the binomial interest rate tree shown below: Year 0 Year 1 Year 2 1.7862% 1.6121% 1.0000% 1.3233% 1.1943% 0.9803%