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Q: Consider a 3-yearmaturity annual 9% coupon payingbond with a YTM of 12%. What is the Duration of this bond? What will be the predicted

Consider a 3-yearmaturity annual 9% coupon payingbond with a YTM of 12%. What is the Duration of this bond?

What will be the predicted price of this (usingDuration in the calculations) bond if the market yield increases by 100 basis points? If your calculation does not use Duration, you will not get full credit for this problem. [10 + 10 = 20 points]

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