Question: 7 (/0 P017115) 8 If interest rates were to decrease by 25 basis points, (i) what percentage change in price would you expect for the

7 (/0 P017115) 8 If interest rates were to decrease by 25 basis points, (i) what percentage change in price would you expect for the bond? (ii) Find the new price using the duration met/Ind (5 points) 9 If the change in interest rates were 10 basis points. would the pricing error using the duration method be greater/less than the direct method of pricing? Briefly explain

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