A) (50% of Total marks) Assume that a 5-year 3% coupon bond (coupon paid semianually) sells at par. Furthermore, assume the 5-year spot rate is 5%. Price a 5-year inverse floating rate note that pays 50(10% 6-month LIBOR) semiannually. Explain your steps in detail. (ii) What is the duration of a direct floating rate note in this setting? Why? (iii) Provide a numerical estimate of the duration of the inverse floater in part (i). Specify all additional assumptions (if any) required to produce this numerical value. A) (50% of Total marks) Assume that a 5-year 3% coupon bond (coupon paid semianually) sells at par. Furthermore, assume the 5-year spot rate is 5%. Price a 5-year inverse floating rate note that pays 50(10% 6-month LIBOR) semiannually. Explain your steps in detail. (ii) What is the duration of a direct floating rate note in this setting? Why? (iii) Provide a numerical estimate of the duration of the inverse floater in part (i). Specify all additional assumptions (if any) required to produce this numerical value