A corporate bond has 2 years to maturity, a coupon rate of 8%, a face value of $1,000 and pays coupons semiannually. The market interest rate for similar bonds is 0.095.

Attempt 1/10 for 10 pts.

Part 1

What is the price of the bond (in $)?

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Attempt 2/10 for 10 pts.

Part 2

What is the bond's duration?

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Attempt 1/10 for 10 pts.

Part 3

If yields fall by 0.8 percentage points, what is the new expected bond price based on its duration (in $)?