Question: If peter invests in a four-year bond with a face value of $1000 and a coupon rate of 6%. The term structure of interest rates

If peter invests in a four-year bond with a face value

If peter invests in a four-year bond with a face value of $1000 and a coupon rate of 6%. The term structure of interest rates is flat at 3%, i.e. y(t)=3% for all t. a. What is the duration of the bond? (5') b. Use the duration rule to estimate the change in price (in dollars) if the term structure of interest shifts to 4%? (5') c. What would be the actual price change

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