Question: 3. (13 points) Consider a 10 year zero coupon bond trading at a price to produce 5% annual compounding yield of 5% b. Should you

 3. (13 points) Consider a 10 year zero coupon bond trading
at a price to produce 5% annual compounding yield of 5% b.

3. (13 points) Consider a 10 year zero coupon bond trading at a price to produce 5% annual compounding yield of 5% b. Should you need to use one bond price volatility measure to explain the change, which one will you use? (2 points) Compute the number as well as the projected percentage change in price from a yield of 5% to 6% using the number. (5 points)

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