Consider a 30-year corporate bond paying 9 percent semi-annual coupon. The current yield to maturity is 11 percent. a. Find the modified duration. Make sure to show your work. b. Refer to part a. If the interest changes by 25 basis points, what is the exact change in price? Make sure to show your work. c. Refer to part b. If the interest changes by 25 basis points, what is the approximate change in price? Make sure to show your work. Consider a 30-year corporate bond paying 8 percent semi-annual coupon. The current yield to maturity is 10 percent. Find the approximate bond's modified duration by using changes in the interest rate up and down by 5 basis points. What is a monetary policy target? Explain why it is difficult for the Fed to target both the interest rate and the money supply simultaneously. The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by 25%. Explain why this occurred. How can the money supply fall when the base increases? Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System