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  3. 1. a bond currently sells for $1,200, which gives

1. A bond currently sells for $1,200, which gives it a yield to maturity of...

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Accounting

1. A bond currently sells for $1,200, which gives it a yield to maturity of 8%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,155. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

2. A nine-year bond paying coupons annually has a yield of 10% and a duration of 7.213 years. If the bond's yield changes by 60 basis points, what is the percentage change in the bond's price? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

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