An investor wants to find the duration of a(n) 25-year, 7%semiannual pay, noncallable bond that's currently priced in the market at $481.01, to yield 15%. Using a 250 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11).

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.)