Suppose you are interested in purchasing a two-year risk-free bond with a face value of $100 and an annual coupon rate of 6%? (a) What is the today's price of the bond? (b) What is the yield to maturity for the bond? Round your answer to six digits after the point. (Hint: Set up a quadratic equation of the form ax + bx + c = 0, where a, b and c can be either positive or negative. Now use the quadratic formula x1,2 = -bb-4ac to solve this equation for YTM.) 2a (c) Suppose that the 2-year spot rate has increased. How will it affect the today's price of the bond and its yield to maturity?