Use the following information for Questions $6-10$:

Table of Interest Rates:

Consider the following bond:

Exactly $3$ years to maturity

$9\mathrm{.}7\%$ coupon rate, paid annually

$$100$ par value

Bond is callable in exactly $1$ year for $101\mathrm{.}5$ and exactly $2$ years for $100\mathrm{.}5.$

Rate from $t=0$ to $t=1$

Rate from $t=1$ to $t=2$

Rate from $t=2$ to $t=3$

What is the price of the callable bond in this scenario per $100$ of par value? Round your

answer to three decimal places.

What is the investor's annualized rate of return on the callable bond if interest rates increase

in both $1$ and $2$ years $($e$.$g$.,$ the $1-$year rate at time $1$ is $7\mathrm{.}63\%,$ the $1-$year rate at time $2$ is

$12\mathrm{.}43\%?$ Express your answer as a percentage and round your answer to three decimal

places.

What is the investor's annualized rate of return on the callable bond if interest rates

decrease in both $1$ and $2$ years $($e$.$g$.,$ the $1-$year rate at time $1$ is $5\mathrm{.}65\%,$ the $1-$year rate at

time $2$ is $6\mathrm{.}82\%)?$ Express your answer as a percentage and round your answer to three

decimal places.