Consider a bond with a coupon of 7 percent, five years to maturity, and a current price of $1,025.30. Suppose the yield on the bond suddenly increases by 2 percent.

Use duration to estimate the new price of the bond.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Calculate the new bond price using the usual bond pricing formula.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.