Using annual compounding, calculate the price of this bond in one year if rates do rise to 8.5%. How does this price change compare to that predicted by the modified duration? Explain the difference. The Macaulay duration is years. (Round to two decimal places.) The modified duration is years. (Round to two decimal places.) If market yields rose to 8.5%, the change would be j. (Round to two decimal places.) Using annual compounding, the price of this bond in 1 year if rates do rise to 8.5% is $ (Round to the nearest cent.) The actual percentage change in bond price is \%. (Round to two decimal places.) Which of the following is true? (Select the best choice below.) A. Duration is a good predictor of price volatility if rates change less than 2%. B. Duration is not a good predictor of price volatility if rates change more than a basis point. C. Duration is not a good predictor of price volatility if interest rates undergo a big swing because of the convex relationship of a bond's price-yield relationship. D. Duration is a good predictor of price volality because of the convex relationship of a bond's price-yield relationship