Years 2a. The current spot rate curve is in the table below, which is identical to that in the previous question. Assume o is 10%. Find the values for ri, r2, and r3 so that the binomial tree model price the 12-month, 18-month, and 24-month zero-coupon bonds correctly. period Annualized Spot Rate 6.0000% 6.1496% 1.5 6.2654% 6.4227% 0.5 AWN 2b. Use the binomial tree model that you developed in 2a to price a 2-year 8% coupon bond with the par value of $1000. 2c. Suppose the bond in 2b is callable at the price of $1000 in 6 months, 12 months, and 18 months. Price the callable bond. Does the callable bond have a higher or lower price than the bond in 2b and why? 2d. Suppose the bond in 2b is puttable at the price of $1000 in 6 months, 12 months, and 18 months. Price the callable bond. Does the puttable bond have a higher or lower price than the bond in 2b and why? Years 2a. The current spot rate curve is in the table below, which is identical to that in the previous question. Assume o is 10%. Find the values for ri, r2, and r3 so that the binomial tree model price the 12-month, 18-month, and 24-month zero-coupon bonds correctly. period Annualized Spot Rate 6.0000% 6.1496% 1.5 6.2654% 6.4227% 0.5 AWN 2b. Use the binomial tree model that you developed in 2a to price a 2-year 8% coupon bond with the par value of $1000. 2c. Suppose the bond in 2b is callable at the price of $1000 in 6 months, 12 months, and 18 months. Price the callable bond. Does the callable bond have a higher or lower price than the bond in 2b and why? 2d. Suppose the bond in 2b is puttable at the price of $1000 in 6 months, 12 months, and 18 months. Price the callable bond. Does the puttable bond have a higher or lower price than the bond in 2b and why