12) An investor plans to retire in 10 years. As part of the retirement portfolio, the investor buys a newly issued, 12-year, 8% annual coupon payment bond. The coupon is paid semiannually. The bond is purchased at par value, so its bond-equivalent-yield is 8.00% stated as an effective annual rate. a) Estimate the modified duration for the bond, using a l bp increase and decrease in the semiannual yield-to-maturity and par value of $100. b) Estimate Macaulay duration for the bond based on the relationship between modified duration and Macaulay duration c) Does this bond at the time when the investor relires entail the risk of higher or lower interest rates? Interest rate risk here means an immediate, one-time, parallel yield curve shift