Consider a three-year 10 percent coupon bond with a par value of $100. Suppose the yield on the bond is 12% per annum with continuous compounding. a. What is the bond's theoretical price? [1.5 pts] b. What is the bond's duration? [1.5 pts] c. Use the duration to calculate the effect on the bond's price of a 0.1% increase in its yield. [1.5 pts] d. Recalculate the bond's price on the basis of a 12.1% per annum yield and verify that the result is in agreement with your answer to question c above. [1.5 pts]