Question: (Bond in the term structure, 20 points) Consider a 5-year, 7% coupon bond, paid annually, with a face value of $100 in a market

(Bond in the term structure, 20 points) Consider a 5-year, 7% coupon

(Bond in the term structure, 20 points) Consider a 5-year, 7% coupon bond, paid annually, with a face value of $100 in a market with the following short rates. To n 5.00 5.50 5.90 6.25 6.50 (a) Find the price of this bond. Assume that the interest is compounded continuously. (b) Find the Fisher-Weil duration of the bond. (c) If the spot rate curve is shifted up by 0.5%, what will be the new bound price?

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