A $$1,000,10\%$ annual coupon bond matures in $10$ years. The bond has YTM of $7\mathrm{.}5\%.$

What's the price, yield, duration, and modified duration? Draw the duration convexity graph based on this bond.

$2$ Compare Rate of Change$($YTM$)$ to Bond Price$($P$)$

$\backslash$table$[[$YTM$,$Change in YTM$,$Duration Est,Duration P $($Linear$),$Bond P$($Actua$)],[4\mathrm{.}50\%,,,,],[5\mathrm{.}00\%,,,,],[5\mathrm{.}50\%,,,,],[6\mathrm{.}00\%,,,,],[6\mathrm{.}50\%,,,,],[7\mathrm{.}00\%,,,,],[7\mathrm{.}50\%,,,,],[8\mathrm{.}00\%,,,,],[8\mathrm{.}50\%,,,,],[9\mathrm{.}00\%,,,,],[9\mathrm{.}50\%,,,,],[10\mathrm{.}00\%,,,,],[10\mathrm{.}50\%,,,,]]$

$3$ Duration Graph

Basic

Convexity $1$

Convexity $2$

HW$6\_$Bond Approximation

$10006$

Local budcup off