You have a bond with the following features: - Semi-annual coupon payments. - Coupon rate 7.60%. - Face value $1,000. - 3.5 years to maturity. - Current market price $1,130. Requirements (A, B, and C...

You have a bond with the following features:

- Semi-annual coupon payments.

- Coupon rate 7.60%.

- Face value $1,000.

- 3.5 years to maturity.

- Current market price $1,130.

Requirements (A, B, and C are independent):

1. Calculate the duration and modified duration for this bond.

Duration  ___ Mduration  ___

2. Now, let’s assume the modified duration of this bond is 3 years. If the yield increases by 30 bps (basis points), what will the new price of the bond using modified duration?

3. If the yield drops by 75 bps, what is the actual new price of the bond?