Suppose that you just bought a bond with face value of $1,000 with a coupon rate of 8% (coupons paid semi-annually) and a remaining time to maturity of 2 years. The annual yield to maturity is now 10%.

a. What is the price you bought the bond?

b. What is the duration of that bond today?

c. What is the value of the bond if the annual yield to maturity is now 8%? What would be your capital gain/loss if you sold the bond now?