a. QUESTION TWO A bond is paying 6% coupon annually with 3 years to maturity and a yield to maturity of 6%. Determine the duration of this bond and interpret your answer. (28 marks) b. A bond with a duration of 7.194 years has a yield of 10% and 9 years to maturity. Determine the percentage change in the bond price if the market yield rises by 50 basis points. (12 marks) c. Discuss whether it is accurate to use the duration approach to determine the bond price. (10 marks) a. QUESTION TWO A bond is paying 6% coupon annually with 3 years to maturity and a yield to maturity of 6%. Determine the duration of this bond and interpret your answer. (28 marks) b. A bond with a duration of 7.194 years has a yield of 10% and 9 years to maturity. Determine the percentage change in the bond price if the market yield rises by 50 basis points. (12 marks) c. Discuss whether it is accurate to use the duration approach to determine the bond price. (10 marks)