In the preceding question, assume that the convertible bond is also callable at a price of $110 (cum-coupon). Rework the price of the convertible bond. Explain your answer.

Data in preceding question,

Using a semiannual CRR binomial tree, price a convertible bond with a face value of $100, conversion ratio of 1, and a coupon rate of 10%. The maturity of the bond is three years. Assume that the stock volatility is 25%. The risk-free rate of interest is 4%. All calculations may be based on continuous compounding. On conversion, the holder of the bond loses the accrued interest.