Please use the following information for questions 20 - 23. Duration is a very important concept that allows investors to better understand the risk of owning a particular bond. For example, we are interested in buying a three-year bond with a $1,000 face value, a 6% coupon (paid annually) and an 8% yield to maturity. 20. What is the duration of this bond? a. 2.81. b. 2.82 c. 2.83 d. 2.84 21. How long should you hold the bond in order to earn the 8% YTM you expected? a. To its maturity b. 2.83 years c. 2.90 years d. 2.95 years e. 3.0 years 22. If market yields were to rise by 40 basis points, what price change would you expect in the bond discussed above, using the formula for modified duration in your calculation? a. - $9.94. b. $10.68. c. - $12.98 d. - $15.54