Quantitative Problem 3. Calculate the duration of a $100,000 fixed-rate, 30-year mortgage with a nominal annual rate of 7.0%. What is the expected percentage change in value if the required rate drops to 6.5% immediately after the mortgage is issued? 1i. A bank added a bond to its retained portfolio. The bond has a duration of 12.3 years and cost $1,109. Just after buying the bond, the bank discovered that market interest rates are expected to rise from 8% to 8.75%. What is the expected change in the bond's value