An investor wants to find the duration of a$($n$)10-$year, $8\%$ semiannual pay, noncallable bond that's currently priced in the market at $$875\mathrm{.}38,$ to yield $10\%.$

Using a $250$ basis point change in yield, find the effective duration of this bond $($Hint: use Equation $11\mathrm{.}11).$

The new price of the bond if the market interest rate decreases by $250$ basis points $($or $2\mathrm{.}5\%)$ is $

$($Round to the nearest cent.$)$