Question: 1) a) (1 point) Draw the price chart for an asset with high convexity and an asset with low convexity. In this chart, the y-axis

1) a) (1 point) Draw the price chart for an asset with high convexity and an asset with low convexity. In this chart, the y-axis is the price and the x-axis is the yield-to-maturity. b) (2 points) Assume interest rates change 200 basis points. State whether a price estimate using first-order modified duration will or will not provide a good estimate for the change in price of an asset with high convexity and why.

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