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A five-year bond pays annual coupon payments of 10%. The face value of the bond is...

A five-year bond pays annual coupon payments of 10%. The face value of the bond is $1,000 and has a current market price of $1,079.85. The current yield to maturity is 8%. (15m) Calculate the Duration (D) of this bond by completing the table below. Show all working. Suppose that the interest rates increased by 75 basis points as of today. Calculate the percentage and dollar amount change in the price of the bond. Calculate the new price of the bond today due to the change in interest rate.

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