Balmar Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6 percent for these bonds....

Balmar Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6 percent for these bonds.

1.      What is the price of the Balmar corporate bonds?

2.      What is the Macaulay duration of the Balmar corporate bonds?

3.      What is the Modified duration of the Balmar corporate bonds?

4.      If interest rates increase 50 basis points, what will be the new price for the Balmar bond?