Assume the spot rates for the next six years are given by:s1= 0.03, s2= 0.0385, s3= 0.0446, s4= 0.0490, s5= 0.0521, s6= 0.0543. a) Compute the price of a 5.5% coupon bond (annual coupon payment) with...

Assume the spot rates for the next six years are given by:s1= 0.03, s2= 0.0385, s3= 0.0446, s4= 0.0490, s5= 0.0521, s6= 0.0543.

a) Compute the price of a 5.5% coupon bond (annual coupon payment) with face value $100and maturity six years.

b) What is the quasi-modified duration of the bond?

c) Determine next year’s spot rates s′1, s′2, s′3, s′4, s′5according to expectation dynamics.