Question: Problem Solving (80 points) 1. (25 points) a). What is the price of a bond with a face value of $100 that will mature in

Problem Solving (80 points) 1. (25 points) a). What is the price of a bond with a face value of $100 that will mature in 24 months and pays a coupon of 6% per annum (coupons are paid semiannually) given the yield is 8% continuously compounding? b). What is the bond's duration? C). Use the duration to calculate the effect on the band's price of an increase of 10 basis points in its yield

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