Part d please

Exercise 2. Fixed-Income Securities. Consider a 10% coupon bond with a face value of 100 that matures in 2 years from now. Assume that there is one coupon payment per year and that the bond is absolutely risk free. The current spot rate curve is given in the following table (yearly compounding), $1 S2 S3 4% 6% 8% a What is the price of this bond? b Find an analytical formula for the yield of this bond and use your formula to compute the bond's yield numerically. Compute the bond's Macauley duration. d Compute the bond's price and yield in one year from now assuming that the spot rates will evolve according to expectation dynamics. Assume further that the first coupon payment is still to be received. Exercise 2. Fixed-Income Securities. Consider a 10% coupon bond with a face value of 100 that matures in 2 years from now. Assume that there is one coupon payment per year and that the bond is absolutely risk free. The current spot rate curve is given in the following table (yearly compounding), $1 S2 S3 4% 6% 8% a What is the price of this bond? b Find an analytical formula for the yield of this bond and use your formula to compute the bond's yield numerically. Compute the bond's Macauley duration. d Compute the bond's price and yield in one year from now assuming that the spot rates will evolve according to expectation dynamics. Assume further that the first coupon payment is still to be received