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A) Suppose we have three year Eurobond with 8% coupons yearly and 8% yield to maturity, calculate the duration of the bond. B) Suppose interest

A) Suppose we have three year Eurobond with 8% coupons yearly and 8% yield to maturity, calculate the duration of the bond.

B) Suppose interest rate increases to 10%. what is the new bond pricing using the Duration model.

C) Estimating pricing error based on duration model versus true pricing bond equation.

Please show your work and throughly explain how you reached the answers. Thank you.

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