A bond has $1,000 par value, 3% coupon rate and 10-year maturity. It is currently selling for $918.89, and its yield to maturity is 0.04.

1. What is the current yield?
2. Assuming the yield-to-maturity to be same at 0.04, what is the price of the bond next year? (4 pts)
3. Continuation from the question 2 (a $1,000 par value, 3% coupon rate, 10-year maturity bond, and 0.04 yield to maturity),
4. Calculate the duration of the bond.
5. Suppose that the yield to maturity has increased by 0.01 to 0.05. Using the duration, what is the approximated new price?