A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end of each year. What is the bond's price? (Use your calculations for the next questions) 108.07 QUESTION 14 A 5-year bond with a yield of 5% (continuously compounded) pays an 8% coupon at the end of each year. What is the bond's duration? (Use the calculations from the previous problem to make it easier) QUESTION 15 A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end of each year. Use the duration from the previous question to calculate the effect on the bond's price of a 0.1% decrease in its yield. What is the new bond price? (Remember if the yield goes down what happens to the the bond price?) QUESTION 16 A 5-year bond with a yield of 5% (continuously compounded) pays an 7% coupon at the end of each year. Check the results from your previous duration calculation the long way. Recalculate the bond's price on the basis of a 4.9% per annum yield and verify that the result is in agreement with your answer to the previous question. A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end of each year. What is the bond's price? (Use your calculations for the next questions) 108.07 QUESTION 14 A 5-year bond with a yield of 5% (continuously compounded) pays an 8% coupon at the end of each year. What is the bond's duration? (Use the calculations from the previous problem to make it easier) QUESTION 15 A 5-year bond with a yield of 5% (continuously compounded), with a face value of $100, pays an 7% coupon at the end of each year. Use the duration from the previous question to calculate the effect on the bond's price of a 0.1% decrease in its yield. What is the new bond price? (Remember if the yield goes down what happens to the the bond price?) QUESTION 16 A 5-year bond with a yield of 5% (continuously compounded) pays an 7% coupon at the end of each year. Check the results from your previous duration calculation the long way. Recalculate the bond's price on the basis of a 4.9% per annum yield and verify that the result is in agreement with your answer to the previous