a. A bond pays semi-annual coupon at a rate of 6%. It will mature in 5 years with a face value of $1,000. If its yield to maturity is 7%, what would be the current market price for the bond? b. Assume in the next year, the bond has its yield to maturity drop to 5%, what would be its new price and what would be the percentage change of bond price? C. Deriving from part a., what is the bond duration and convexity when yield to maturity is 8%?