Question: Please help with question 4! Thanks! Please help with question 4! Thanks! Please help with question 4! Thanks! Please help with question 4! Thanks! Please

Please help with question 4! Thanks! Please help with question 4!

Please help with question 4! Thanks!

Given the following information: Current Interest Rate is 5% question 3 There are 3 different scenarios: Interest Rate can stay the same at 5% with probability 1/3 or increase to 6% with probability 1/3 or decrease to 4% with probability 1/3 Bond's information: Maturity is 8 years Coupon is 5%, paid annually Par value is $1,000 Call Price is $1,050 If the bond can be called immediately, at what interest rate will the bond be called? O 6% O 5% O 4% Question 4 2 pts Using the information of question 3, what is the price of the callable bond? (Round to 2 decimal places)

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