Question: ( 6 . 5 points ) What is the value of a 3 - year step - up callable note that pays 5 % for

(6.5 points) What is the value of a 3-year step-up callable note that pays 5% for two years and then
8% for two more years using the interest rate tree below. Assume that this note is callable in one year
at par ($100).(i.e. The bond is callable starting from year 1).(all calculation pls)
(6.5 points) What is the value of a 3-year step-up callable

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