3.

Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest is paid semiannually.

a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places.

years

b. Assuming the bond's YTM goes from 14% to 13.5%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any.

%

Please answer a and b thanks