Consider a ten year bond with time to maturity of 3 years. The face value of this bond is 1500 EUR and coupon payment (each year) is 10%.

Calculate the current market price of this bond assuming the 1% discount rate.

Calculate the duration and modified duration of this bond if a relevant discount rate is 1% at the moment.

If the discount rate increases by 40 bps (i.e. from 4.0% to 4.4%), calculate the change in price of this bond.