The following information has been given regarding the spot rates and the forward rates. Construct a binomial tree interest rate based upon the given data assuming the volatility is 30%. Following spot rates are given along with partial interest rate tree as follows:

Year	Spot Rates
1	2%
2	3%
3	4%

One-year forward rates with volatility 30% are given as follows:

t=0	t=1	t=2
2%	5%	B
	A	C
		D

Also, after constructing the binomial tree, find the value for $100 par value, 3-year, 3% annual pay bond.