Sifu buys a bond that bond pays annual coupons at an annual rate of 6% for 8 years. Its redemption and face values are both 10,000.

(a) Calculate the Macaulay duration of this bond at a flat annual effective yield of 6%.

(b) Use this to approximate the change in price of the bond if the yield curve were to undergo a parallel shift upward to 7% using the first-order Macaulay approximation. Make sure to indicate whether this is an increase or decrease in price.