3.3 A 100 par value bond with 3 years to maturity and a 12 percent coupon has a yield to maturity of 10 percent. Interest is paid semi-annually. Assume no arbitrage. Compute the price of the bond. Use the duration rule to estimate the percentage price change for this bond, if the yield decreases by 150 basis points. Explain why this estimate is likely to be an inaccurate measure of the actual change in the bond's value. Discuss which bond trading strategies would you implement to take advantage of this information. You are expected to provide a critical analysis specifically considering factors such as bond maturity, coupon and yield level. Support your answer with calculations