Question: 2 (3.57 points) You are an analyst considering a bond that has duration of 3.0 years, current price of $1,100, and current yield to maturity

2 (3.57 points) You are an analyst considering a bond that has duration of 3.0 years, current price of $1,100, and current yield to maturity (YTM) of 8%. If the YTM falls to 3%, you know that the actual price would rise to $1,300. If you used duration to estimate this new price, how far off would you be? $25.45 too low $85.32 too high $47.22 too low $102.93 too high

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