Name l m: Yield to memoir Spar Rats: Coupon Rate (\".1 Ill] 1 - 5.50 I '5 - t; 00 2 10\" ? Bonds of 0.5-. 1-. and 15-year maturities are new coupon bonds. The 2-year bond has an annual coupon rate of ?"/o and its yield to maturity is also 7%. All the mponcd yields are shown below are on a bond-equivalent basis which is twice of' the semiannual bond yields): Answer lhc following questions: a. What is the spot rate in year 2? o What is the forward rate from year 1.5 to year 2'! q (I) Calculate the Macaulayr duration of the following bond: Annual coupon rate: 8% (coupons are made semi- annual Iy): YTM: 6%: Maturity: 1.5 years Par value: $ I 00 Open Office 99 Q) 0 O O b. What is the forward rate from year [.5 to year 2? 3. (I) Calculate the Macaulay duration of the following hood: Annual coupon rate: 8% (coupons are made semi- annually); YTM: Golgi; Maturity: 1.5 years Par value: it I 01) (.2) \\Vhat the dollar price change due to duration when the band's yield to maturity decnezmes from 6% to 5%? Open Office Q? 000