You have a one-year zero coupon bond that pays $1, which price today is $0.9523. You have a two-year coupon bond with a principal value of $100 and coupons of 5%. The spot rate for 2 years, (r2) is 10%. (a) What is the price of the coupon bond today? (b) Compute the duration for the coupon bond and explain how to compute the yield to maturity (only set the equation in the last case). (c) Assume the YTM for the coupon bond is 9.87%. What is the modied duration? What would be the new price of the bond if the yield increases by 1%?