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The yield curve is flat at 8% for all maturities. Consider a 2-year bond with...

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The yield curve is flat at 8% for all maturities. Consider a 2-year bond with a coupon rate of 10% per year. The face value is $100 and the coupons are paid annually. (a) (5 points) What is the price of the bond? (b) (5 points) Calculate the Macaulay's duration of the bond. ((4), continued) (c)(3 points) Calculate the yield-to-maturity of the bond. (d) (5 points) Use your answers in parts (b) and (c) to calculate the approximate percentage change in the bond price, if the yield curve now shifts upward to 9% for all maturities

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