Problem 1 (7 points) We consider a 7-year straight term bond issued currently. It has face value F=$1500 and redemption value C=$1800. The annual coupon rate is 7% payable quarterly. The current annual effective yield rate is 6.1364%. (a) Find the current price of the bond. (b) Suppose that the bond price has raised by $66.9 after 2 years, find the annual effective yield rate of the bond at that time using Newton's method. Show all details