Question: 1 . Consider a two - year coupon bond with ( 5 % ) coupon rate ( Annual coupons ) .

1. Consider a two-year coupon bond with \(5\%\) coupon rate (Annual coupons).\(\mathrm{FV}=100\). The bond sells at par. a) What is the YTM of the bond? (Hint: The bond sells at par.) b) Find the modified duration of the bond. c) What is the approximated percentage price change if the yield goes up by one percent? Assume the bond has a convexity of 5.27.
Answer without using excel
1 . Consider a two - year coupon bond with \ ( 5

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