ABC Corp has a 6% coupon bond making annual payments that matures in 3 years.
a) Find the duration of the bond. if it has three years until maturity hand has a yield to maturity of 10%
b) Using the modified duration relationship, find the price of the bond if the yield goes up by 75bps.
c) Compared to a zero-coupon bond that has a maturity of 4 years, which bond would change most to a rate change? Explain without using calculations.