a$)$ Using annual compounding, find the duration of a $9-$year $9\%$ coupon bond that has yield of $11\%.$

b$)$ If interest rates were to increase by $40$ basis points, what percentage change in price would you expect

for the bond? Find the new price using the duration method.

c$)$ Using annual compounding find the duration. Which one is riskier?

d$)$ Bond $D$ is selling at a discount. Bond $P$ is selling at a premium. Interest rates are thought to increase,

which bond do you select? Explain. Interest rates are thought to decrease, which bond do you select? Explain.

Hint: You may want to use a price$/$yield curve as part of the explanation.