8. A bond has a modified duration of 6.5 years. What is the change in bond price if YTM decreases by 100 basis points (.e. 1%)? Pay close attention to if your answer is positive or negative based on this decrease in YTM. 9. You buy a $120,000 house and have a 20% down payment (hence the mortgage is for $96,000). A 30 year mortgage has a rate of 6.5% and 0 points. What is the monthly mortgage payment? 10. You buy a $200,000 house and have a 20% down payment (hence the mortgage is for $160,000). A 15 year mortgage has a rate of 3.5% and 0 points. The monthly mortgage payment is $1,143.81. How much (give the dollar amount) of the first month's mortgage payment pays off principal on the mortgage? To answer, first compute how much of the first month's payment is used to pay interest. Then, the remainder of the mortgage payment is used to pay down the principal. (You may find the Excel discussion of a mortgage amortization helpful for answering this question)