Question: Here are some bond information: Bond Coupon (%) Maturity(year) Yield to Maturity (%) Coupons are paid annually. a) Please price a bond with 5% coupon

Here are some bond information: Bond Coupon (%) Maturity(year) Yield to Maturity (%) Coupons are paid annually. a) Please price a bond with 5% coupon rate and 3 year time to maturity b) Please calculate the modified duration of a portfolio investing 30% in bond 1 and 70% in bond 3 c) The yield curve just shifted up by 0.15%. How much did the value of the portfolio in question b change?

Bond 1 2 3 Coupon (%) Maturity(year) Yield to Maturity (%) 5 1 4.5 5 2 5 0 3 5.5 CON Bond 1 2 3 Coupon (%) Maturity(year) Yield to Maturity (%) 5 1 4.5 5 2 5 0 3 5.5 CON

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