Consider a 2-year $3000 bond that's redeemable at par and pays semi-annual coupons at a rate ofc(2)=4%.

(a) Suppose that the yield rate is 4.6% compounded annually. Determine:The purchase price of the bond and The bond's duration to 3 decimals.

(b) Suppose that the yield rate is 4.6% compounded semi-annually. Determine:The purchase price of the bond and The bond's duration to 3 decimals.

(c) Suppose that the yield rate is 4.6% compounded continuously. Determine:The purchase price of the bond and The bond's duration to 3 decimals.

bonsider a 2-year $3660 bond that's redeemable at par and pays semi-annual coupons at a rate of ca:I = 4%. {a} Suppose that the yield rate is 4.6% compounded annually. Deten'nine: The purchase price of the bond. P = $ The bond's duration to 3 decimals. D = years Note: Use the purchase price to the closest cent in your duration calculation. {lo} Suppose that the yield rate is 4.6% compounded semi-annually. Determine: The purchase price of the bond. P = 6 The bond's duration to 3 decimals. D = years Note: Use the purchase price to the closest cent in your duration calculation. {c} Suppose that the yield rate is 4.6% compounded continuously. Deten'nine: The purchase price of the bond. P = S The band's duration to 3 decimals. D = years Note: Use the purchase price to the closest cent in your duration calculation