The current price of an annual coupon bond is 100. The derivative of the price of the bond with respect to the yield to maturity is - 650. The yield to maturity is an effective rate of 7%. a) Calculate the Macaulay duration of the bond. b) Estimate the price of the bond using formula P(i + h) = P(1) [1 h] when the yield rate is 8% instead of 7%