Nominal Value 100 Maturity 5 YtM 0.08 Coupon 0.1 Time CF CF*(1+ytm)^(-n) t*CF(1+ytm)^(-n) 1 10 9.259259259 9.259259259 2 10 8.573388203 17.14677641 3 10 7.93832241 23.81496723 4 10 7.350298528 29.40119411 5 110 74.86415167 374.3207584 PRICE 107.9854201 453.9429554 DURATION 4.203743015 years. M.DURATION 3.892354644 %. DOLLAR DURATION 4.203175513 ($). "How much change the price of the bond if the interest rate will a) raise by 1 %, b) fall by 1 %?" a b Using Duration: 103.7822446 112.1885956 By hand: 88.91230895 96.11034874