DEF Corporation has just issued a straight bond. The bond pays 12.0% annual interest, makes semi-annual payments, and has a maturity of 25 years. Face value of the bond is $100.0. a) You believe a reasonable market rate of interest for this bond is 12.25%, what price should the bond be? (10 marks) b) What is the duration of the DEF Corporation bond? (10 marks) c) If the market interest rate increased by 1.0%, what new price would you expect the bond to trade at? What if the market interest rate decreased by 1.0%? Use duration to solve this question. Briefly explain why an answer derived using duration is slightly different from the answer when fully repricing the bond.