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Use modified duration to find the approximate percentage

You have purchased a bond for $973.02. The bond has a coupon rate of 6.4%, pays interest annualy, has a face value of 1000, 4 years to maturity, and yield to maturity of 7.2%. The bond's Macauley duration is 3.6481 years. You expect that interest rate will fall by 0.2% later today. Use modified duration to find the approximate percentage change in the bond's prce. Use your answer to find the new price of the bond.

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Finance Basics: Use modified duration to find the approximate percentage

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