1. onsider a 30-year U.S. bond paying 8 percent coupon. The interest is 10 percent.

   1. Find the bonds Macaulay duration. Make sure to show your work

   2. Find the bonds Modified duration. Make sure to show your work

   3. If the interest rate falls by 10 basis points, what is the exact percentage change in

      the bond price? Make sure to show your work

   4. If the interest rate falls by 10 basis points, what is the approximate percentage

      change in the bond price? Make sure to show your work