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MLK Bank has an asset portfolio that consists of $200 million of 15 -year, 12.5 percent annual coupon, $1,000 bonds that sell at par. a-1.

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MLK Bank has an asset portfolio that consists of $200 million of 15 -year, 12.5 percent annual coupon, $1,000 bonds that sell at par. a-1. What will be the bonds' new prices if market yields change immediately by \pm 0.10 percent? a-2. What will be the new prices if market ylelds change immediately by \pm 2.00 percent? b-1. The duration of these bonds is 7.4620 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. What will be the bonds' new prices if market yields change immediately by \pm 0.10 percent? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. ( e.g., 32.16))

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