3.You own a bond that has a duration of 6 years. Interest rate are currently 7 % but you believe the FED is about to increase interest rates by .25%. The predicted price change on this bond would be :

A. + 1.40%

b. 1.40%

c. 2.51%

d. + 2.51%

4. a bond pays annual interest , its coupon rate is 9%. Its value at maturity is $1000. It matures in 4 years. Its yield to maturity is currently 6%. The duration of this bond is ____ years.

a. 2.44

b.3.23

c. 3.56

d. 4.10