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9. You hold a bond with nine years until maturity, a YTM of 4 percent, and a duration of 7.5. The cash (one-year) rate

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9. You hold a bond with nine years until maturity, a YTM of 4 percent, and a duration of 7.5. The cash (one-year) rate is 2.5 percent. allob a. In the next few minutes, you expect the market yield to go up by 5 basis points. What is the bond's expected percentage price change, and your expected return, over the next few minutes? b. Over the next year, you expect the market yield to go down by 30 basis points. For ael this period, estimate the following: i. The bond's expected price change ii. Your expected return iii. The bond's risk premium

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