You just purchase a coupon bond with a face value of $1000, 6% coupons, and three years remaining to maturity. Assume that all markets are 7% A) what is the duration of this bond B) Compute the exact price change(using the present value formula) if interest rates drop to 6.75% C) Use the duration to compute the approximate price change due to a drop in interest rates to 6.75%. How large is the approximate error (in dollars)?