from 10% to 9.5%). Find the percentage change in the price of the bond %P Ar considering: a) Duration alone 16. Suppose you hold a 5% coupon bond maturing in 5 years yielding 5% and a duration of 4.54 years. The interest rates increase from 5% to 6% immediately after you purchase the bond. If you sell the bond after 3 years, and receive a 6%) interest income on the annual coupon payments, the actual rate of return(ARRis 17. A bond has a current price of $1.030. The yield on the bond is 8%. If the yield changes from 8% to 8.10%, the price of the bond will go down to $1,025.88 based on duration. The modified duration of the bond is 18. Consider the following two bonds: Bond A Bond B $1,000 Face Value Maturity Coupon $1,000 4 years 4% 4 years 0%