A bond has a face value of $1,000 and a coupon rate of 3%. Interest is paid semi-annually. This bond matures in 3 years. Current market interest rates are 4%. a. What is the modified duration of this bond? b. If interest rate decrease 1%, what is the new bond price as predicted by modified duration? A 182-day $14 million negotiable CD has a 5.00% annual rate quote. It is currently selling at par as market rates are 5%. Thirty days have passed. Market rates have risen to 5.50%. You desire to sell the negotiable CD. How much should you receive for the NCD if you sell it