You aregiven information about zero coupon bonds. Bond equivalent yield 0.025 0.030 0.035 0.040 0.045 0.050 Time period Time to maturity (years) 0.50 1.00 1.50 2.00 2.50 3.00 Note: The bond equivalent yield is equal to the six-month yield times 2 a. b. C. d. Calculate the price of the zero coupon bond for each of the maturities (assume the face value is $100) Calculate the price of a 3-yr, 4% coupon bond (face value is $100) with semi-annual coupon payments. The 4% coupon rate is the annual rate. Calculate the bond equivalent yield for the bond in part (b)using the Excel RATE and YIELD functions (answers should be the same) Calculate the duration of the bond in part (b)using the Excel DURATION function (no credit otherwise) Now assume that the yield (BEY) in part (c)changes by 0.40% (assume this happens today). Calculate the new price using the duration from part (d) You aregiven information about zero coupon bonds. Bond equivalent yield 0.025 0.030 0.035 0.040 0.045 0.050 Time period Time to maturity (years) 0.50 1.00 1.50 2.00 2.50 3.00 Note: The bond equivalent yield is equal to the six-month yield times 2 a. b. C. d. Calculate the price of the zero coupon bond for each of the maturities (assume the face value is $100) Calculate the price of a 3-yr, 4% coupon bond (face value is $100) with semi-annual coupon payments. The 4% coupon rate is the annual rate. Calculate the bond equivalent yield for the bond in part (b)using the Excel RATE and YIELD functions (answers should be the same) Calculate the duration of the bond in part (b)using the Excel DURATION function (no credit otherwise) Now assume that the yield (BEY) in part (c)changes by 0.40% (assume this happens today). Calculate the new price using the duration from part (d)