MLK Bank has an asset portfolio that consists of $230 million of 15-year, 8 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 9.2442 years. What are the predicted bond prices in each of the four cases using the duration rule?

	Bonds New Price
At + 0.10%
At 0.10%
At + 2.0%
At 2.0%

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

	Amount of Error
At + 0.10%
At 0.10%
At + 2.0%
At 2.0%