The coupon rate and market price for the 10 year US Treasury bond are 2.50% and 96,3828 respectively . Note , the price is expressed as a percentage of par. If the par is 1000, then the bond is selling for 963.828

1- assume that this bond will mature precisely 10 year, pay coupons semi-annually and has a par value of 1000. Determine the yield to maturity for his bond.

2- compute the duration of this bond and use it to estimate the new value of bond if rates were to suddenly decline by 0.80%.

3- calculate the bond value assuming that rates declined 0.80 from the yield to maturity estimated in question 1.

4- compare your answers to question 1 & 2 . Explain the difference.