Consider a $10\%($coupon$),5-$year $($maturity$)$ bond. The face value is $$100$ and the coupons are annual.

The current estimates of the annual spot rates are

s$1$ s$2$ s$3$ s$4$ s$5$

$6\mathrm{.}006\mathrm{.}356\mathrm{.}686\mathrm{.}907\mathrm{.}00$

a$.$What is the price of the bond?

b$.$ Under the expectation hypothesis what will be the price of the bond after two years, just after the

payment of the second coupon