A 1,000 par value bond with 3 years to maturity and a 6 percent coupon has the yield to maturity of 10 percent. Interest is paid semi-annually. 1) Calculate the current price of the bond. Does this bond sell at a discount, at par, or at a premium? 2) Calculate the Macaulay Duration for the bond. 3) Calculate the Modified Duration for the bond. 4) Estimate the percentage price change for this 3-year 1,000 par value bond, with a 6% coupon, if the yield decreases by 75 basis points. Interest is paid semi-annually 5) Based on your answer in 4), what trading strategy (considering the modified duration of a bond portfolio) would you implement to take advantage of such a change in market yields