Consider a(n) Six-year, 14 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 11 percent.

a. What is the price of the bond?

b. If the rate of interest increases 1 percent, what will be the bonds new price?

c. Using your answers to parts (a) and (b), what is the percentage change in the bonds price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign.)

d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates.