A is a coupon bond that matures in 5 years. The coupon rate is 3 percent per year. The bond' s principal is $5,000 and the market price is $3,500. a.Compute A Bond's duration using the yield of 0.05 computed in the previous problem. b.Suppose the yield increase by 0.01, compute the new price of A Bond. c.From question ii, compute the actual change in bond prices. d.Use a duration-based formula to predict the change in A Bond's price. How does this compare with the actual change?