. Calculate the yield spread of the following floating rate bond:  •    Annual coupon rate = reference rate + 200 basis points •    initial reference rate (annual) = 4% •    The bond has a 10-year of term to maturity •    Assume the bond’s par value = USD1000 •    The price of the bond = USD1,032.84 B. Suppose the new reference rate is decreased to 3% two years after the bond is issued. What is the price of the bond then?

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