Suppose the coupon rate on a bond is 10% paid annually, the yield to maturity is 12%, the face value of the bond is $1000, the maturity is 2 years, and the price of the bond is $966.20.

a. According to his information, you can say that this bond is sold on the market:

A) at par value

B) at a premium

C) at a discount

b. Using the information provided above, calculate the duration of the annual coupon bond:

c. If the yield to maturity increased to 12.1% and duration is 1.92 years, what would the new price of the bond be