Use the following to answer the next two questions.

Find the duration of a 3 year bond that carries a t5% coupon rate and sells at par. Round intermediate steps to four decimals.

a) .9568

b) 2.7298

c) 2.7694

d) 2.8594

e) cannot be determined

What will be the percentage change in the value of the bond mentioned in the previous question if the yield to maturity increases by 25 basis points? Round intermediate steps to four decimals.

a) -.0023

b) -.0065

c) -.0066

d) -.0068

e) Cannot be determined