A two year bond with a yield of 10% (continuously compounded) pays a 4% coupon at the end of each year. Please note this bond only pays coupon once a year. Face Value of the bond is $100. Use continuous compounding and answer the following questions.

a. What is the bonds price?

b. What is the bonds duration?

c. Use the duration to calculate the effect on the bonds price of a 0.5% increase in its yield?