Question: A ( $ 100 ) par value bond with 7 annual coupons and maturing at par in 3 years sells at a price to yield

$A \$ \\$ 100 \$ par value bond with \7 annual$

A \$ \\$ 100 \$ par value bond with \7 annual coupons and maturing at par in 3 years sells at a price to yield an annual effective interest rate of \i=5. Using the First-Order Modified Duration, approximate the price if the new interest rate increased to \mathrmi=5.08. a) 105.22 b) 105.33 c) 105.44 d) 105.11 e) 105.55

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