Given a Government Floating Rate Note with coupon 1 year government rate using the following Zero Coupon Curve with a first 3% coupon already fixed 6 months ago that will be paid in 6 months. 6 months Zero Coupon Rate: 3,8% 1.5 years Zero Coupon Rate: 4% 2.5 years Zero Coupon Rate: 4,5% 3.5 years Zero Coupon Rate: 5%

1)Compute Modified Duration

2) If Yield moves up 1 basis point

a)Compute New Bond Price using Duration

b)Compute New Bond Price using Full Recomputation