Question: increase; Increase decrease; increase decrease; decrease QUESTION 1 Assume there is a bond with a $1,000 par value and 13 percent coupon rate, three years

increase; Increase decrease; increase decrease; decrease QUESTION 1 Assume there is a bond with a $1,000 par value and 13 percent coupon rate, three years remaining to maturity, and a 11 percent vield to maturity. Then, the IRS changes and required rate of return increases to 12%. Please estimate the percentage change in bond price by using the modified duration formula first. And then compare it to actual percentage change in price. (Calculate also the actual price change.) Show all your steps clearly. (use fx button to write math formulas if needed) TTTT Paragraph : Arial : 3(12p . E. T. XDOQOFETEST' T. --- > Words:0 ESTION 20 e prices of bonds with are less sensitive to interest rate movements. e and Submit to save and submit. Click Save All Answers to save all answers. Save All Answe

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