Consider a four-year bond with a 10% coupon paid semiannually (or 5 percent paid every 6 months) and an 7% required rate of return.What is the bond price?

B. The bonds duration is 3.33 years, suppose the rate of return increases by 20 basis points from 7% to 7.2%, calculate the percentage change in bond price?? What is the new bond price??