2. Consider a semi-annual coupon payment bond selling at par ($1000) with a coupon rate of...
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2. Consider a semi-annual coupon payment bond selling at par ($1000) with a coupon rate of 4% and 3 years to maturity. (a) Calculate the percentage change in the bond price if the yield increases from 4% to 5%. (b) Calculate the Modified Duration for the bond. (c) Calculate the Macaulay Duration for the bond. (d) Calculate the Convexity for the bond. (e) Calculate the percentage change in bond price based on duration and convexity if the yield increases from 4% to 5%? (a) #N/A (5 points) (b) #N/A (5 points) (c) #N/A (5 points) (d) #N/A (5 points) (e) #N/A (5 points) 2. Consider a semi-annual coupon payment bond selling at par ($1000) with a coupon rate of 4% and 3 years to maturity. (a) Calculate the percentage change in the bond price if the yield increases from 4% to 5%. (b) Calculate the Modified Duration for the bond. (c) Calculate the Macaulay Duration for the bond. (d) Calculate the Convexity for the bond. (e) Calculate the percentage change in bond price based on duration and convexity if the yield increases from 4% to 5%? (a) #N/A (5 points) (b) #N/A (5 points) (c) #N/A (5 points) (d) #N/A (5 points) (e) #N/A (5 points)
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