Question: A bond with face value = 6,000 currently trades at par. Its Macaulay duration is 4.91 years and its convexity is 63.98. Suppose yield currently

A bond with face value = 6,000 currently trades at par. Its Macaulay duration is 4.91 years and its convexity is 63.98.

Suppose yield currently is 2.32%, and is expected to change to 3.65%. Calculate the approximate dollar change in price using both duration and convexity.

Assume annual compounding. Round your answer to 2 decimal places.

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