Question: Please help 2. Suppose the bond's YTM changes in the same way as a 5-year T-bill interest rate. Use the bond's modified duration to evaluate

Please help

Please help 2. Suppose the bond's YTM changes in the same way

2. Suppose the bond's YTM changes in the same way as a 5-year T-bill interest rate. Use the bond's modified duration to evaluate the relative change in the 5-year bond's value if the interest rate on 5-year T-bills falls by one basis point, that is, by 0.0001. (1 mark) This part was extracted from the balance sheet of the First Bank of Australia: here "Bond" here refers to the bond we specified above and the fixed-rate liabilities banks future payment obligations) have an average duration of 4 years and YTM of 3%. Their YTM changes in the same way as a 5-year T-bill interest rate. 2. Suppose the bond's YTM changes in the same way as a 5-year T-bill interest rate. Use the bond's modified duration to evaluate the relative change in the 5-year bond's value if the interest rate on 5-year T-bills falls by one basis point, that is, by 0.0001. (1 mark) This part was extracted from the balance sheet of the First Bank of Australia: here "Bond" here refers to the bond we specified above and the fixed-rate liabilities banks future payment obligations) have an average duration of 4 years and YTM of 3%. Their YTM changes in the same way as a 5-year T-bill interest rate

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