A 30-year maturity bond making annual coupon payments with a coupon rate of 14.3% has duration of 11.34 years. The bond currently sells at a yield to maturity of 8%. Required: a. Find the price of the bond if its yield to maturity falls to 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) HINT: CH10 Bond Valuation concepts. Price of the band b. What price would be predicted by the duration rule, if its yield to maturity falls to 7% ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price c. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) HINT: CH10 Bond Valuation concepts. Price of the bond d. What price would be predicted by the duration rule, if it's yield to maturity rises to 9% ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price
