Part 2 Callable Bond Use the interest rate tree given below to find the value of a callable bond and compare it to the value of a non-callable bond. 0.053025 0.041596 0.020202 0.031364 0.020056 0.009932 t=0 t=0.5 t=1 1. Use the tree above to price a 1.5-year bond that pays a semi-annual coupon with a coupon rate of 3%. This bond is callable, every six-months at a price of $100 starting in six-months from today (t= 0.5). Remember, the callable bond value is equal to the value of the non-callable bond less the call option value. Part 2 Callable Bond Use the interest rate tree given below to find the value of a callable bond and compare it to the value of a non-callable bond. 0.053025 0.041596 0.020202 0.031364 0.020056 0.009932 t=0 t=0.5 t=1 1. Use the tree above to price a 1.5-year bond that pays a semi-annual coupon with a coupon rate of 3%. This bond is callable, every six-months at a price of $100 starting in six-months from today (t= 0.5). Remember, the callable bond value is equal to the value of the non-callable bond less the call option value