Question: Question 2 (20 marks) Consider these 3 bonds: US Gov't Treasury Bond 2.375% due May 15, 2029 trading at a yield to maturity of

Question 2 (20 marks) Consider these 3 bonds: US Gov't Treasury Bond 2.375% due May 15, 2029 trading at a yield to maturity of 1.686%. Assume a settlement date of October 31, 2019. US Gov't Treasury Strip due May 15, 2029 trading at a YTM of 1.791%. Assume a settlement date of October 31, 2019. Motorola Solutions 4.60% due May 23, 2029 trading at a YTM of 3.389%. Assume a settlement date of October 31, 2019. a) (18 marks) Calculate each bond's Macaulay Duration, Modified Duration and the Convexity Measure. Note, you must calculate the full market price of each bond to arrive at the duration and convexity figures (do not back out accrued interest). 1

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