An investor wants to find the duration of a(n) 30-year, 10% semiannual pay, noncallable bond that's currently priced in the market at $774.51, to yield 13%. Using a 150 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11). Question content area bottom Part 1 The new price of the bond if the market interest rate decreases by 150 basis points (or 1.5%) is $enter your response here. (Round to the nearest cent.) Part 2 The new price of the bond if the market interest rate increases by 150 basis points (or 1.5%) is $enter your response here. (Round to the nearest cent.) Part 3 The effective duration of the bond is enter your response here. (Round to two decimal places.)

An investor wants to find the duration of a(n) 30 -year, 10% semiannual pay, noncallable bond that's currently priced in the market at $774.51, to yield 13%. Using a 150 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 150 basis points (or 1.5% ) is $. (Round to the nearest cent.) The new price of the bond if the market interest rate increases by 150 basis points (or 1.5% ) is $ (Round to the nearest cent.) The effective duration of the bond is (Round to two decimal places.)