4. A 5-year bond with a yield of 12% and face value equal to $ 1000 pays an 8% coupon at the end of each year. a)

What is the bond price?

b) What is the bond duration ?

c) Use the duration to calculate the effect on the bond price of a 0.2% increase in its yield

. d) Recalculate the bond's price on the basis of a 12.2% yearly yield.