Problem 2: Evolution of a bond's price over time (5 points) (a) A five-year bond has a yield to maturity of 1%, a face value of $1,000, and pays no coupons. Compute its price today and its price in one year, assuming that its yield to maturity stays at 1%. Price today: Price in one year: (b) A five-year bond has a yield to maturity of 1%, a face value of $1,000, and pays annual coupons at a rate of 2%. Compute its price today; its price the instant before the first coupon is payed; and its price the instant after the first coupon is payed. Assume that its yield to maturity stays at 1%. Price today: Price pre-coupon: Price post-coupon