3. Assume a 5-year, $1,000 Treasury bond paying a 8 percent annual coupon and selling at par a) What is the duration for this bond? b) What is the modified duration of the bond? What is the dollar duration of the bond? c) Using the duration model, what is the estimated new price if rates rise by 80 basis points? d) What would the actual price of the bond be under each rate change situation in part (c) using the traditional present value bond pricing techniques? What is the error? 3. Assume a 5-year, $1,000 Treasury bond paying a 8 percent annual coupon and selling at par a) What is the duration for this bond? b) What is the modified duration of the bond? What is the dollar duration of the bond? c) Using the duration model, what is the estimated new price if rates rise by 80 basis points? d) What would the actual price of the bond be under each rate change situation in part (c) using the traditional present value bond pricing techniques? What is the error