EXERCISE #$3$: If the yield to maturity decreases by $\backslash$Delta y $=35$ bp $=0\mathrm{.}35\%$ then according to

the mod duration approximation, the price of the bond will change to:

New P $=$ $ $............................$

$$Copyright by Robert Dubil, $2021$

Practical Application: Consider the following corporate and muni bond info from Thursday $2/11/2021$

$($Settlement is T$+2$ i$.$e$.2/15/2021).$ All the bonds are semiannual.

Rating Cusip Issuer Coup Maturity Yield Price

A$2/$A $24422$ETC$3$ Deere John Cap Corp Mtns Be $3\mathrm{.}49/11/20250\mathrm{.}723112\mathrm{.}009$

A$2/$A$-747525$AU$7$ Qualcomm Inc Make Whole Call $02/20273\mathrm{.}255/20/20271\mathrm{.}119112\mathrm{.}850$

A$3/$A$-20825$UAC$8$ Conoco Fdg Co Make Whole Call $10/20317\mathrm{.}2510/15/20312\mathrm{.}880139\mathrm{.}878$

A$2/$BBB$+38141$EW$70$ Goldman Sachs Inc Conditional Puts $5\mathrm{.}56/15/20333\mathrm{.}293122\mathrm{.}337$

B$1/$B $55616$XAM$9$ Macys Retail Hldgs Inc $4\mathrm{.}512/15/20346\mathrm{.}07885\mathrm{.}375$

Baa$1/$BBB$+92343$VCQ$5$ Verizon Comm Make Whole Call Exp $04/20344\mathrm{.}411/01/20342\mathrm{.}487122\mathrm{.}100$

Baa$1/$A$-209111$EU$3$ Consolid Edison NY M Whole Call $04/20386\mathrm{.}75004/01/20382\mathrm{.}887151\mathrm{.}901$

Baa$2/$BBB $959802$AM$1$ Western Un Co Make Whole $6\mathrm{.}26/21/20404\mathrm{.}262125\mathrm{.}350$

Aa$2/$AA$-822582$AY$8$ Shell Intl Fin Bv Make Whole Call $08/20434\mathrm{.}55008/12/20432\mathrm{.}986125\mathrm{.}477$

Baa$3/$BBB$-277432$AP$5$ Eastman Chem Co $4\mathrm{.}6510/15/20443\mathrm{.}424119\mathrm{.}770$

Baa$3/$BBB $690742$AG$6$ Owens Corning Make Whole Call $01/20474\mathrm{.}30007/15/20473\mathrm{.}176120\mathrm{.}000$

Mdy$$s$/$S&P CUSIP Issue Coupon Maturity Price YTW YTM CallDate

Aaa$/$AAA $890346$ML$0$ Tooele Cnty Utah Sch Dist

Callable $12/25$@$100$

$5\mathrm{.}00006/01/2026122\mathrm{.}3410\mathrm{.}3000\mathrm{.}69312/1/2025$

A$1/$AA $917567$DR$7$ Utah Tran Auth Sales Tax

Callable $06/28-$OID$-$Bam Insured

$3\mathrm{.}37512/15/2034114\mathrm{.}8581\mathrm{.}2482\mathrm{.}1296/15/2028$

Aa$1/$AA$+917547$ZK$0$ Utah St Bldg Ownership Auth

Callable $05/25$

$3\mathrm{.}25005/15/2038107\mathrm{.}8151\mathrm{.}3502\mathrm{.}6815/25/2025$

A$2/$A $795576$GS$0$ Salt Lake City Utah Arpt Rev

Callable $07/27-$ Sinking Fund $07/43$

$507/01/2047121\mathrm{.}3011\mathrm{.}4853\mathrm{.}7257/01/2027$