Use the following interest rate tree to value bonds. The standard deviation of interest rates is 10%.

TODAY: T1 = 3.4%

Year 1 : Th = 5.838% , Tl = 4.7801%

Year 2: Thh = 7.1683% , Thl = 5.8689% , Tll = 4.8051 %

Year 3: Thhh = 9.2016% , Thhl = 7.5337% , Tlll = 6.1680% , Tllll = 5.0500 %

Descriptions of Bond:

BOND A: Coupon rate = 5%, Par = $100,000 , Maturity years = 4, Other description = Option-free

BOND B: Coupon rate = 5%, Par = $100,000 , Maturity years = 4, Other description = Puttable at par starting at end of year 1

BOND C:Coupon rate = 5%, Par = $100,000 , Maturity years = 4, Other description = Callable at par starting at end of year 1

What is the value of the put option embedded in Bond B? What is the value of the call option embedded in Bond C?