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20. A coupon bond matures in four years. Its par is $1000 and it makes eight coupon payments of $21, one every one-half year. The

20. A coupon bond matures in four years. Its par is $1000 and it makes eight coupon payments of $21, one every one-half year. The continuously compounded forward rate is

r(t) = 0.022 + 0.005t0.004t2 + 0.0003t3.

(a) Find the price of the bond.

(b) Find the duration of this bond.

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