The features of your asset and liability are as follows:

Assets	Liabilities
Treasury Bonds: $100,000 (Par value)	Bank Loans: $100,000
Interest rate and coupon rate = 8%	Interest rate= 7%
Semi-annual interest (coupon) payment	Annual payment of interest
Duration = 7.5 years	Duration= 7 years

Using the duration model, how the price of the treasury bond (D=7.5) will change if interest rate decreases by 3%? (Hints: R=3%, MD=D/(1+R/2))