MLK Bank has an asset portfolio that consists of $60 million of 30-year, 6-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 14.5907 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? (Do not round intermediate calculations.

Round your answers to 2 decimal places. (e.g., 32.16))