Question: QUESTION 22 points San Answer Assume there is a bond with a $1,000 par value and 11 percent coupon rate, three years remaining to maturity,

QUESTION 22 points San Answer Assume there is a bond with a $1,000 par value and 11 percent coupon rate, three years remaining to maturity, and a 12 percent yield to maturity. Then, the IRS changes and required rate of return increases to 13%. 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) Arial 3(120) : TE BIX Click Save and Submit to save and submit. Click Save All Answers to sow all answers C Save All Answers

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