Question: A. Using excel, plot graphs of the modified duration and convexity versus the note rate c (for 1% ? c ? 20%) of a 30

A. Using excel, plot graphs of the modified duration and convexity versus the note rate c (for 1% ? c ? 20%) of a 30 year, fully amortizing, fixed rate, par mortgage. Annotate cells to show work. Assume that the mortgage never prepays/curtails, nor does it ever default

B. Use the duration and convexity for c=5% in the previous question to plot the error in the percentage price change in the mortgage when yields change in the range of 0% to 3%, using

1.Duration only, and

2.Duration and convexity together.

show all formulas used please

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