Question 36 [Total marks 35] A. Given the factors that determine the value of an asset, why is there an emphasis on estimating the growth rate of earnings, cash flows, or dividends? [10 marks] B. Calculate the duration of an 8%, $1,000 par bond that matures in three years if the bond's Ym is 10 percent and interest is paid semiannually. i. ii. Calculate this bonds modified duration. [20 marks] Assuming the bonds Ym goes from 10 percent to 9.5%, calculate an estimate of the price change. [5 marks]