(10 Marks) A 8-year bond with annual coupon payments has a face value of $100. It sells for $89 and has the coupon rate of X%, where X is obtained by adding 0.5 to the last digit of your student number. For example, if your student number is 21334, then X = 4.5 and therefore the coupon rate is 4.5%. Compute the bonds yield to maturity and its modified duration. Briefly explain.