A treasury bond with the interest is paid in annual installments. The annual current market (riskless) interest rate is 12% (annually). The principal value per-bond is $ 1.000, with a 10-year maturity.

a. Determine the duration of bond (using annually) and explain what the benefit of the result from your calculations!

b. If for any reason, the market yield increases by 20 basis points (0.20%), estimated the percentage change in the price of bond!

c. Determine the value of bond if the market interest rate 12% annually.

d. Suppose you purchase the treasury bond described above and immediately thereafter the market interest rate falls to 10% and increase to 14%. What would be the new market price of the bond? (annually), premium or discount?

no other additional information is given in the question