You have a 2-year zero coupon bond that pays 100 which price today is 79.72. In the market there is a two year 5% coupon bond with principal of 100, as well. The spot rate for 1 year is r1 = 3%.

(a) What is the price today of the coupon bond?

(b) What is yield to maturity (YTM) of every bond?

(c) What is the duration of every bond?

(d) What is the modified duration of every bond?

(e) Using the previous information, what is the percentage change in the price of every bond if there is a 1% change in the yield?