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Consider a 24-year $1,000 face bond with a coupon rate of 2.5%, a ytm of 3%, and a price of 943.18. The bond pays coupons

Consider a 24-year $1,000 face bond with a coupon rate of 2.5%, a ytm of 3%, and a price of 943.18. The bond pays coupons semi-annually and has a duration of 11.82 years.

1) What is this bond's modified duration?

Now suppose the bond's ytm decreases to 2%.

2) Using modified duration, approximately what will be the bond's new price?

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