3. (10 pts) Consider a bond with a yearly coupon rate of 12%, priced at $1076, yielding 9%, with a duration of 2.6 and a convexity of 9.
3.A Calculate the price of this bond when the going rate of interest in the market is 8%, using solely the combined duration and convexity measures.
3.B Calculate the price of this bond when the going rate of interest in the market is 10%, using solely the combined duration and convexity measures.