MLK Bank has an asset portfolio that consists of $180 million of 15-year, 10.5 percent coupon, $1,000 bonds with annual coupon payments that sell at par.

a-1. What will be the bonds new prices if market yields change immediately by 0.10 percent? a-2. What will be the new prices if market yields change immediately by 2.00 percent? b-1. The duration of these bonds is 8.1702 years. What are the predicted bond prices in each of the four cases using the duration rule?

I need help with this one, please.

b-2. What is the amount of error between the duration prediction and the actual market values?

A+ 0.10%=