Consider an option-free Bond A with the following information (assume the bonds coupon interest is paid semiannually):

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Consider an option-free Bond A with the following information (assume the bond’s coupon interest is paid semiannually): Coupon rate = 8% Yield to maturity on a bond equivalent basis = 8% Maturity in years = 2 Par value = $1,000 Market price = $1,000.

a. What is the price value of a basis point for Bond A?

b. What is the yield value of 1⁄32?