Bond Price calculation:

An investor buys a bond with the following characteristics:

• Maturity - 10 years
• Coupon - 4.5%, paid once per year
• Nominal Value - 100
• Macaulay duration - 7.9321
• The yield to maturity at the time of purchase is 8.50%.

Use the modified Macaulay duration to calculate what the price of the above bond would have been immediately after purchase, if the yield to maturity had dropped to 6.5%.