A bond has just been issued. The bond has an annual coupon rate of 9% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 10 years. The bonds yield to maturity is 12%.

1. Calculate the bonds duration at a yield to maturity of 12%.
2. Calculate the bonds duration at a yield to maturity of 10.5%.
3. Use the bonds duration to calculate the approximate bond price change as the yield to maturity changes from 12% to 10.5%.
4. Use the bonds modified duration to calculate the approximate bond price change as the yield to maturity changes from 12% to 10.5%.