A corporate bond has 2 years to maturity, a coupon rate of 4%, a face value of $1,000 and pays coupons semiannually. The market interest rate for similar bonds is 5.5%.

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

What is the bond's duration in years?

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

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

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