Question: 1. You own a 5-year annual bond with a coupon rate of 6% and a YTM of 6.6%. This bond has a Modified Duration of

1. You own a 5-year annual bond with a coupon rate of 6% and a YTM of 6.6%. This bond has a Modified Duration of 4.20 and Convexity of 22.6. Estimate the price change resulting from a 0.5% increase in yield.

List your answer to four decimal places.

2. You own a 5-year annual bond with a coupon rate of 6% and a YTM of 6.6%. This bond has a Modified Duration of 4.20 and Convexity of 22.6. Estimate the price change resulting from a 0.75% decrease in yield.

List your answer to four decimal places.

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