Adani Ports intend to blue bonds to finance one of their projects. Bonds have a maturity of four years with a face value of Rs. 500 and an agreed coupon rate of 8%. Assume the interest rate (yield to maturity) is 10%. The coupon payment is made half-yearly.

1. Calculate the price of the bond.

2. Calculate the duration of the bond.

3. Calculate the modified duration of the bond.

4. If the interest rate goes to 12 %, what is the new price of the bond?

5. If the interest rate comes down by 0.50%, what is the new price of the bond?