You are considering purchasing A BOND WITH the following characteristics; YTM= 5.5%, annual Coupon Rate is 4% and interest is paid annually on the on the bond. There are 7 years remaining to maturity and the face value of the bond is $10 to assess the risk of the bond you calculate the duration. Why? What are the MacCauly and Modified duration of this Bond? Now say you want to know what the impact on the bond would be if you were to experience a 2% change in interest rate, what measure would you use? (you need to calculate the measure)