a. You have a two year coupon bond with a 10% coupon rate. Th principal is $100. The spot rate for 2 years (r2) is 15%. What is the price of this bond today?

b. Compute the duration for the coupon bond and set the question that would solve for the YTM

c. Compute the modified duration for the two bonds and answer what would be the price of the two bonds if the YTM increases in every case by 1%. The Yield to maturity for the coupon bond is 14.74%

d. Suppose you have a portfolio composed of 1 unit of every bond. You are scared that the yield increase by 5%. What would the return of your portfolio be in this case if you plan to sell the bonds immediately after the shock in the interest rate? Use as initial prices the ones you computed in the precious points