You own a 4%, 8 year to maturity bond which is selling for 90.397. You are concerned that the market rates of interest may increase by 1%. A) Using McCauley duration calculate the approximate change in bond price if interest rates increase immediately by 1%. B)Verify with the standard bond calculation. C) If you bought the bond because you had a payment commitment in 8 years time explain if this bond investment will meet your outflow at that time (consider the advantages and disadvantages)