Problem 1 (Required, 25 marks) We consider a 10-year straight term issued currently. It has face value $1500 and redemption value $1500. The annual coupon rate is 6% payable semi-annually. It is given that the annual nominal yield rate is currently 5%. (a) Find the current price of the bond (denoted by P). (b) Suppose that the price of the bond has dropped by $55.6 after 3 years, find the annual effective yield rate of the bond after 3 years using Newton's method. Please provide full details to your calculation