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 $875.38, to yield 10%. Using a 250 basis point change in yield, find the effective duration of this bond

(Hint:use Equation 11.11).

a. The new price of the bond if the market interest rate decreases by 250 basis points (or 2.5%) is $

(Round to the nearest cent.)

b. The new price of the bond if the market interest rate increases by 250 basis points (or 2.5%) is $

(Round to the nearest cent.)

c. The effective duration of the bond is

nothing.

(Round to two decimal places.)