Consider a 6.8 percent coupon bond with eight years to maturity and a current price of $1, 071.70. Suppose the yield on the bond suddenly increases by 2 percent.
Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $ _______
Calculate the new bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $ _______