(a) Compute the duration and modified duration of a 7 year bond that makes annual payments with a coupon rate of 10% and a YTM of 8%.

(b) If interest rates FALL by 100 basis points, what is the dollar and percentage change in price? (c)If interest rates RISE by 100 basis points, what is the dollar and percentage change in price? (d) If the coupon rate was 7% instead of 10%, would the bond be more or less sensitive to changes in interest rates? Explain in detail.