1. A bond has just been issued. The bond has an annual coupon rate of 5% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 8 years. The bonds yield to maturity is 10%.
   1. Calculate the actual change in the bonds price as the yield to maturity changes from 10% to 12%.
   2. Use the bonds duration to calculate the approximate bond price change as the yield to maturity changes from 10% to 12%.