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A bond currently has a maturity of 10 years and pays a 7 percent semi-annual coupon. The yield to maturity is also 7 percent. The

A bond currently has a maturity of 10 years and pays a 7 percent semi-annual coupon. The yield to maturity is also 7 percent. The convexity of this bond is 257

1) What is the duration of the bond?

2) Find the actual price of the bond assuming that its yield to maturity immediately increases from 7 percent to 8 percent (with maturity still 10 years)

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