Consider an ten-year, 15.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12.5 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? d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates