3 (this question has three parts, (a), (b) & (c)) (a) Your supervisor has assigned you the task of pricing a coupon-paying bond with a maturity of 7 years. The coupons are paid semi-annually, and the face value of the bond is $10,000. The coupon rate is 5.5% per year and the applicable market yield is 7%. (i) Calculate the duration and the modified duration of the above bond. (2 marks) (ii) Given the ongoing inflationary concerns and global uncertainty, it is speculated that the current yield of 7% will increase to 7.25%. You are required to calculate the expected price change resulting from this yield increase