A newly issued bond has a maturity of 10 years and pays a 8.6% coupon rate...

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A newly issued bond has a maturity of 10 years and pays a 8.6% coupon rate (with coupon payments coming once annually). The bond sells at par value. Required: a. What are the convexity and the duration of the bond? b. Find the actual price of the bond assuming that its yield to maturity immediately increases from 8.6 % to 9.6% (with maturity still 10 years). Assume a par value of 100. c. What price would be predicted by the modified duration rule %media:22formula103.mml% What is the percentage error of that rule? d. What price would be predicted by the modified duration-with-convexity rule %media:22formula105.mml% What is the percentage error of that rule? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What are the convexity and the duration of the bond? Use the formula for convexity In footnote 7. Note: Round "Convexity" to 3 decimal places and "Duration" to 2 decimal places. Convexity Duration years A newly issued bond has a maturity of 10 years and pays a 8.6% coupon rate (with coupon payments coming once annually). The bond sells at par value. Required: a. What are the convexity and the duration of the bond? b. Find the actual price of the bond assuming that its yield to maturity immediately increases from 8.6 % to 9.6% (with maturity still 10 years). Assume a par value of 100. c. What price would be predicted by the modified duration rule %media:22formula103.mml% What is the percentage error of that rule? d. What price would be predicted by the modified duration-with-convexity rule %media:22formula105.mml% What is the percentage error of that rule? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What are the convexity and the duration of the bond? Use the formula for convexity In footnote 7. Note: Round "Convexity" to 3 decimal places and "Duration" to 2 decimal places. Convexity Duration years