Question: A $ 1 , 0 0 0 5 year bond has a coupon rate of 6 % and interest is paid twice per year. If

A $1,0005 year bond has a coupon rate of 6% and interest is paid twice per year. If the yield
to maturity is 8%, what is the bonds duration? If interest rates are expected to fall by one
quarter of a percent, by how much would you expect the price to change using the modified
duration equation? How much would you expect the price to change using convexity? You
need to use the bond duration and convexity calculator to answer this question

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