5) a) What is the price of a floating coupon-paying bond which pays coupons equal to the 6-month Libor rate every six months and expires in 2 years? b) What would the price be if the bond were to mature in 2.25 years? So, the next coupon is going to be paid in 3 months. Assume that the 6-month Libor rate 3 months ago was 1% (continuous) and the 3-month rate now is .75% (also continuous). 5) a) What is the price of a floating coupon-paying bond which pays coupons equal to the 6-month Libor rate every six months and expires in 2 years? b) What would the price be if the bond were to mature in 2.25 years? So, the next coupon is going to be paid in 3 months. Assume that the 6-month Libor rate 3 months ago was 1% (continuous) and the 3-month rate now is .75% (also continuous)