Question: Hello please assignment due in 1h30 help, believe me if you answer this you ll get many likes from many students Consider 1-factor model and

Hello please assignment due in 1h30 help, believe me if you answer this you ll get many likes from many students

Consider 1-factor model and assume that the price of a certain fixed income security P(y) for y=6%, 6.08% and 5.92% is given by P(0.06)=$20,000; P(0.0608)=$19,800; P(0.0592)=$20,230.

a) Find the estimate for DV01, Duration, and Convexity of this security. Keep at least 4 decimal digits while performing your calculations.

b) Using the Taylor second-order approximation, estimate the price of the security when y=6.2%. Round your answer to the nearest cent

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