Question: Problem 10-24 Using Duration (LO4, CFA6) Consider a bond with a coupon of 8.6 percent, twelve years to maturity, and a current price of $1,04370.

Problem 10-24 Using Duration (LO4, CFA6) Consider a bond with a coupon of 8.6 percent, twelve years to maturity, and a current price of $1,04370. Suppose the yield on the bond suddenly increases by 2 percent. a. Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3 Answer is not complete. Price b. Calculate the new bond price using the usual bond pricing formula. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. 903.34 Price

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