Given the following information, use the approximation method to calculate the modified duration of the semi-annual, option-free bond. You may assume that no interest has accrued on this bond since the last coupon payment. (Use annual yield changes of 10 basis points to calculate P+ and P-, and carry price calculations to 4 digits.) Coupon: 6%, Initial YTM: 5%, Maturity: 10 years, Initial Price = 107.795 (per $100 par)

B) Using the above information, calculate the approximate convexity measure of the bond.

C) Use the information you determined in the two previous questions to determine the updated price of the bond described in Question 29, given the expectation of a 65 basis- point increase in the bond's yield, due to a credit-rating downgrade.