Question: 4. (30 points) A 10-year bond with face value $1000 pays semi-annual coupons at a nominal rate of 10% per annum and is redeemable at

4. (30 points) A 10-year bond with face value $1000 pays

4. (30 points) A 10-year bond with face value $1000 pays semi-annual coupons at a nominal rate of 10% per annum and is redeemable at par at maturity. (1) Calculate the price of the bond that yields 9% convertible semi-annually. (2) Calculate the Macaulay duration of the bond. (3) Find an approximation for the bond price when the yield rises to 9.5%

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