Consider a 10-year bond, with a $1,000 face value, a coupon rate of 9% and a convexity of 59.82. The bonds YTM today is 7.5%. Coupon frequency is assumed to be annual. (a). What is the duration of this bond? (b). What is the exact price change range in dollars if interest rates decrease or increase by 100 basis points? [Price change range = Py Py] (c). Use the duration model with convexity adjustment to calculate the approximate price change range in dollars if interest rate decreases or increases by 100 basis points.

Answer part c.