Given the following information: Current Interest Rate is 6% There are 3 different scenarios: Interest Rate can
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Given the following information: Current Interest Rate is 6% There are 3 different scenarios: Interest Rate can stay the same at 6% with probability 0.23 or increase to 8% with probability 0.26 or decrease to 4% with probability 0.51 Bond's information: Maturity is 30 years Coupon is 6% , paid annually Par value is $1,000 Call Price is $1,033 If the bond can be called immediately, the price of the callable bond is $ . If there is a call protection period of 25 year(s): The price of the callable bond is $ . The price of the straight bond is $ . The price of the call option is $ .
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