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 9.5%. Duration is 1.886 years, NPV is 973.25.

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

b. What is the actual bond price after the change in yields (in $)?

c. What is the difference between the two new bond prices (in absolute $)?