. Modified Duration this bond: coupon interest rate: 2%, yield: 2.5%; al pay: 3 years. (9 points) a. ind the bond price in decimal format (as though principal is 1.0) and in percentage-of though principal is 100). par format (as b. ing that price find the Macauley Duration. c. sing Macauley Duration find Modified Duration Take a bond portfolio whose modified duration is -5; How much will the portfolio's value is $2,000,000 the portfolio value change if the yield rises by 1 basis point (0.01% or 0.0001? (3 points) b. If you want to hedge this portfolio against an increase different bond whose modified duration is -10, will you buy or sell this hedge bond, and how much in value (i.e. not principal amount) will you in yield (decline in value) using a buy or sell? (3 points) Take a stock portfolio with a value of $5,000,000 d whose beta is 1.05. How much will the the portfolio value change if the S&P500 ("The Market") rises by 5%? (3 points) b. using a different stock whose is sell this hedge stock, and how much will you buy or sell? points) If you hedge this portfolio against a decline in value 1.0, will you buy or (3