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A bond has a face value of 100 with a 6% coupon rate. The maturity is 4 years. The coupon payment is made at the

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A bond has a face value of 100 with a 6% coupon rate. The maturity is 4 years. The coupon payment is made at the end of each period. The interest rate is currently 5%. a. Calculate the current price of the bond. (10\%) b. Suppose you buy the bond now and sell the bond in one year at the price of 105 , what is your rate of return. (20\%)

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