Callable Bond - Fixed Income interest, somebody, procedure, first

hw0799

Does somebody know how to figure out the interest rates on the interest rate tree in Exhibits 12 and 13 (Pages 305 and 306, CFA Text, Vol. 5) . Following the procedure on page 304, it appears what was added/deducted based on Step 2 is 22.69 basis points not 25 points as indicated. Or, is it that the interest rates in the interest rate tree in Exhibit 5 (page 296) were first shifted by 25 points to calculate the market price of 102.218, later the OAS spread of 35bps was then added? Can somebody help, please.


Secondly, can somebody help me figure out how the Convertible's Returns in the last column of page 321, same book as above, were arrived at?

5566

It's all done via bootstrapping, and as AndrewUNH said I'm highly confident we don't have to know that (if we do, I'm F-d). Just start at the end,work backwards. Beware of calls or puts.