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Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today, and is priced to

Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today, and is priced to yield 6%.

1. calculate the dollar duration and the price value of a basis point.

2. estimate the percent and dollar price changes associated with a 0.5% increase in yield.

For the bond above, calculate the dollar duration and the price value of a basis
point.

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