Suppose the Treasury issued today a four year bond with a notional of $100 and a continuously compounded yield of 5% that pays a 4% coupon at the end of each year. (a) What is the price of this bond? (b) What is the duration of the bond? (c) If the yield decreases 10bps, what should be the approximate change to the price of the bond? (d) Suppose that the Federal Reserve just announced a revised monetary policy that causes the Treasury yield curve to change. Discuss the impact of such a change to the yield and price of this bond. Note that a change in the monetary policy may not be reflected in the same way throughout the curve. For example, if the central bank increases the money supply the result is typically a reduction to the short-term interest rates.