MLK Bank has an asset portfolio that consists of $$120$ million of $15-$year, $12$ percent annual coupon, $$1,000$ bonds that sell at par.

a$-1.$ What will be the bonds$$ new prices if market yields change immediately by $\backslash$pm $0\mathrm{.}10$ percent?

At $+0\mathrm{.}10\%=$

At $-0\mathrm{.}10\%=$

a$-2.$ What will be the new prices if market yields change immediately by $\backslash$pm $2\mathrm{.}00$ percent?

At $+2\mathrm{.}0\%=$

At $-2\mathrm{.}0\%=$

b$-1.$ The duration of these bonds is $7\mathrm{.}6282$ years. What are the predicted bond prices in each of the four cases using the duration rule?

At $+0\mathrm{.}10\%=$

At $-0\mathrm{.}10\%=$

At $+2\mathrm{.}0\%=$

At$-2\mathrm{.}0\%=$

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

At $+0\mathrm{.}10\%=$

At $-0\mathrm{.}10\%=$

At $+2\mathrm{.}0\%=$

At $-2\mathrm{.}0\%=$