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Problem 3 (6 points): Consider 1-factor model and assume that the price of a certain fixed income security Ply) 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) (3 points) Find the estimate for DV01, Duration, and Convexity of this security. Keep at least 4 decimal digits while performing your calculations. b) (3 points) Using the Taylor' second-order approximation, estimate the price of the security when y=6.2%. Round your answer to the nearest cent. Problem 4 (3 points): Consider 1-factor parallel yield shift model with a flat structure of forward rates y. Assume currently y=8%. How many 5-year zero-coupon bonds you need to sell to hedge a portfolio of 1000 of 9-year zero-coupon bonds. Round your answer to the nearest integer number of bonds Problem 3 (6 points): Consider 1-factor model and assume that the price of a certain fixed income security Ply) 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) (3 points) Find the estimate for DV01, Duration, and Convexity of this security. Keep at least 4 decimal digits while performing your calculations. b) (3 points) Using the Taylor' second-order approximation, estimate the price of the security when y=6.2%. Round your answer to the nearest cent. Problem 4 (3 points): Consider 1-factor parallel yield shift model with a flat structure of forward rates y. Assume currently y=8%. How many 5-year zero-coupon bonds you need to sell to hedge a portfolio of 1000 of 9-year zero-coupon bonds. Round your answer to the nearest integer number of bonds