A newly issued Fiat bond has a maturity of 10 years and pays a 7% coupon rate (with coupon payments coming once annually). The bond sells at par value and the convexity is 64.933 Required (20marks) a) What is the duration of the bond? (8marks) b) Find the actual price of the bond assuming that its yield to maturity immediately increases from 7% to 8% (with maturity still 10 years). (3marks) c) What price would be predicted by the duration rule? What is the percentage error of that rule? (4marks) d) What price would be predicted by the duration-with-convexity rule? What is the percentage error of that rule? (5marks)