Question: 02) 30 pts The Treasury has issued a new type of bond. The properties of this bond are given as: - It is a 3-year

02) 30 pts The Treasury has issued a new type of

02) 30 pts The Treasury has issued a new type of bond. The properties of this bond are given as: - It is a 3-year bond with a par value of 100 TL - This bond will be paying a coupon rate of 16% - The coupon payments are in every 3 months (4 times in a year) a) Currently the interest rates being at 16%, how much would you pay for this bond? b) What is the Duration for this bond? c) 6 months have passed and now this bond is trading at 97.829 TL. What is the current market interest rate? Note: Present your results at 3 digits of precision

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