Question: Problem 10-30 Using Duratlon (LO4, CFA3) You find a bond with 19 years until maturity that has a coupon rate of 8 percent and a

Problem 10-30 Using Duratlon (LO4, CFA3) You find a bond with 19 years until maturity that has a coupon rate of 8 percent and a yield to maturity of 7 percent. Suppose the yield to maturity on the bond increases by .25 percent. a. What is the new price of the bond using duration and using the bond pricing formula? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) b. Now suppose the original yield to maturity is increased by 1 percent. What is the new price of the bond? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) c. What is the new price of the bond if the yield to maturity increases by 2 percent? (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. What is the new price of the bond if the yield to maturity increases by 2 percent? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) d. What is the new price of the bond if the yield to maturity increases by 5 percent? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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